Apple has been rumored to be working on the first of a new line of less-expensive iPhones and an overhaul of software services for the devices.

Apple is preparing to roll out a series of lower-priced iPhones to compete with other smartphones on the market. The new models are expected to be sold at about half the cost of existing iPhones.

One of the people, who had seen a prototype less expensive iPhone late last year, said it is intended for sale alongside Apple's existing line. The new device would be about half the size of the iPhone 4, which is the current model. Hence, would possibly have an edge to edge screen.

The new phone, one of its code names is ‘N97’ (No it’s not the Nokia Phone) would be available to carriers at about half the price of the main stream iPhones.

Also, it has been rumored it won't have internal storage on board. Keep in mind Apple makes many prototypes out of which only FEW come out.

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