Recent rumors suggesting that Apple was planning to release a smaller, less expensive iPhone model—dubbed the "iPhone nano"—don't appear to be true, at least according to a new report. Apple is said to be exploring making a less-expensive iPhone model, but it won't be making a significantly smaller device to achieve that goal.
Sources speaking to The New York Times said that Apple won't shrink the iPhone "anytime soon" in order to offer a less expensive model. One source in particular noted that simply shrinking the iPhone wouldn't necessarily make it less expensive. Historically, making a device with the same functionality significantly smaller often costs more (in the short term), not less, and the source suggested that little or no savings in manufacturing costs would be realized by building an "iPhone nano."
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