Apple produces prototype for cheaper, smaller iPhone

NEW YORK, N.Y. – Bloomberg reports that Apple has produced a prototype of the new iPhone – a more compact version of the popular smartphone expected to sell for around $200.

The new version, which reportedly does not have the familiar “home” button, is expected to compete with devices that run on Google’s android software, which was the most popular operating platform in the last quarter of 2010.  

Bloomberg reports that the new version will be approximately one third smaller than the iPhone 4 and will be released by the middle of 2011. 

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