The Wall Street Journal is reporting that they have heard from a credible source that Apple may be set to release a new iPhone, perhaps as early as this summer, that will be half the size of the current iPhone 4G while also half the cost. The target audience of this new phone will be those that want something cheaper than a premium iPhone while also being smaller. WSJ reports that this new iPhone mini will utilize cloud computing via Apple’s MobileMe for online storage of photos, music and videos. Currently the MobileMe service costs $99/year but it should be free for the new iPhone mini owners. Apple has felt increased competition in the market from Android phones that cost much less for the carrier to subsidize so this seems to be an attempt on Apple’s part to level the playing field. Whether this new industry push towards cloud computing for mobile devices pays off is still speculation given that not everyone has access to free blanket Wifi service and the recent caps on data adds to the difficulty.
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