Technology | Apple Apple Plans Cheaper 'iPhone Nano' It would be $200, without contract, assuming it's actually for real By John Johnson Posted Feb 10, 2011 6:31 PM CST Copied A Verizon iPhone is shown the first day it was available at Verizon Wireless stores Thursday, Feb. 10, 2011, in Beachwood, Ohio. (AP Photo/Amy Sancetta) It's been hours since the last Apple product rumor, so here we go: The company is working on a smaller, cheaper iPhone, reports Bloomberg. This version would sell for $200—a price point that would help Apple compete better with Androids—and would not require the standard two-year service contract. The target market date for the phone, not to be confused with the expected iPhone 5 upgrade, is mid-year. Insiders say the prototype is about one-third smaller than the iPhone 4, qualifying it to be the long-rumored "iPhone Nano." Reports of that product have been floating around for years, notes the Huffington Post. Apple also is working on what's known as dual-mode phone that would enable it to work on both the AT&T and Verizon networks. Click for more. Read These Next Actor Michael Madsen is dead at 67. Soccer star Diogo Jota is killed in a car crash. A teen pilot landed on his 7th continent and immediately got detained. Who added bill's proposed tax on clean energy? No one knows. Report an error