Apple has discussed about it with a select number of people including Bloomberg. Bloomberg states that it has also seen the prototype of this new generation of iPhone. The main aim of apple is to decrease the growing popularity of Android in low cost and mid range Smartphone
Analysts stated that Apple was developing a smaller "World Mode" iPhone which would work with Verizon Wireless way back in November 2009. Despite the images of a 2.8-inch iPhone were available in the net, there was no progress made by Apple.
A single person from Bloomberg has seen the prototype of the cheaper and smaller iPhone. He states that the phone does not has a home button and is probably having a touchscreen. This person wishes to remain anonymous as Apple has not publicly announced this phone.
Apart from that Apple is reportedly working on a dual mode (GSM + CDMA) phone which is expected to work anywhere in the world. Apple stated that the universal SIM used in this phone will save the customer from the problems of using numerous SIMs and would also reduce the making cost of SIM cards. The user of this SIM can change networks using Mobile Number Portability and do not need to change SIM cards
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