Apple will not develop a smaller iPhone!
Apple engineers are still working on the new iPhone and it is likely to be similar in size to the current iPhone.
According to the NYTimes, Apple is working on cheaper iPhone as well as integrating voice commands but the company is not planning to launch a smaller iPhone.
But contrary to published reports, Apple is not currently developing a smaller iPhone, according to people briefed on Apple's plans who requested anonymity because the plans are confidential.
The smaller screens would require a different coding of Apps to accommodate the new form which is an issue which Apple tries to avoid.
Apple executives are as well planning on dropping the price of the previous model when the new model is released, which may mean that the iPhone 4 will take the place of the $49 iPhone 3Gs.