0 Apple to sell smaller iPhone for $200 off contract to combat Android

Bloomberg is reporting that Apple is working on a new design for the iPhone for a less expensive, contract-free model to compete Google's Android platform and bypass wireless carrier contracts.

The new iPhone will use a processor, display and other smaller components similar to those of iPhone 4. The report also claims that Apple also has a Dual Mode iPhone in the pike for a summer release.

What's also interesting in this report, Apple is working on a Universal SIM which would allow users to jump from network to network. The small iPhone would cost only $200 off-contract unlike the iPhone 4 which costs $600 off-contact. Significant drop in price, isn't it?

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