The New York Times is putting the kibosh on rumors of an iPhone Nano, saying that Apple is indeed working on a cut price version, but that it won’t be small. Apparently, a smaller iPhone wouldn’t be any cheaper to make, and would be harder to operate — instead Apple is focusing on reducing the cost of internal parts, possibly by lowering things like camera quality or amount of RAM.
Their contacts also say that MobileMe will be free in the near future, and would allow for file syncing without the need for plugging anything in.
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