You all laughed at Zoolander when Blue Steel whipped out his tiny phone and when Will Ferrell did the same thing in a SNL skit but a mini phone may be in the forecast for the smartphone market. Reports are coming into the mainstream that Apple is working on a smaller (by about one-third of its current size) and cheaper version of its iPhone.
According to Bloomberg, Apple is considering launching a series of inexpensive phones as a way to counter the growth of Google Android. Apple is considering selling one of these devices for $200 without a two-year contract. The 16 GB iPhone 4 costs $599 without a service contract currently.

Apple is also reportedly working on Universal SIM technology and dual-mode phones that can work on both CDMA and GSM networks using Qualcomm’s chip technology. Apple has also been interested in creating a SIM that would let users switch between networks. However, who knows how that would affect the networks and the carriers in terms of revenue.

Do we really need a nano version of the iPhone? What’s the efficiency in that? Apple broke the industry with the beautiful iPad and the retina screen on the iPhone 4 is better than any other smartphone out there. While the iPod nano is cute and dainty and especially handy when working out or running outside, what’s the benefit from a smaller phone?