Weighing in on swirling iPhone nano rumors, The New York Times reported Thursday that a rumored smallish iPhone mode, won’t be small at all.

That’s right, those gorgeous iPhone nano artworks will remain just fan mockups.

Instead, the paper wrote quoting unnamed sources involved with Apple’s development cycle, the device will be similar in size to the current iPhone 4 because a smaller form factor would make the phone difficult to navigate and "would not necessarily be much cheaper to manufacture."

The report has debunked a previous Wall Street Journal story calling for a smaller iPhone:

The person said Apple was not planning to introduce a smaller iPhone any time soon.

The News Corp.-owned publication in its report asserted that Apple codenamed the iPhone nano the N97, but the moniker denotes the Verizon iPhone, NYT explains. Apple instead is considering making the new iPhone model, which is expected this summer, more affordable to broaden its appeal and one way to achieve this is by reducing its storage. Internal components make up the bulk of the device’s manufacturing costs and flash storage amounts to about one quarter of the iPhone 4′s bill of materials. A lower-quality camera should also help discount its retail price, the report notes.


Mockup credit: DorianDarko

A richer and more advanced set of voice commands to control the handset are also in the cards, as well as a significant revamp of Apple’s online services suite dubbed MobileMe. Apple will make the latter free rather than continue asking users to pony up a hundred bucks for a year’s worth of membership. The cloud service would act as a digital locker for users’ photos, music, movies and other media, allowing them to synchronize content across iOS devices, bypassing cables and "without people having to do anything." 

Apple will discount the iPhone 4 when a new model comes out in the same way they now sell the iPhone 3GS for $49 with a two-year agreement, sources asserted. Making sense of it all, there’s a point in not introducing a new form factor with a different screen resolution that would require developers to rewrite apps. Apple has so far successfully avoided platform fragmentation issues that complicates software development on Android. Should Apple come out with a cheaper iPhone, the company could enjoy a whooping sixfold increase of unit sales, a Sanford C. Bernstein & Company analyst told the paper.

Source: The New York Times