After Bloomberg, it is now the turn of the Wall Street Journal to suggest that Apple is working on a smaller and cheaper version of the iPhone, which we dubbed the iPhone 5 mini and on which Apple has been working since late last year.
We don't know whether Bloomberg and WSJ share the same source as the latter basically confirmed what the former said; that the phone, which is known internally as the N97, will cost around half the price of the iPhone, which would equate to £255 SIM Free in the UK, slightly less expensive than the Motorola Defy.
The phone is expected to have an edge-to-edge screen with a touch interface (possibly voice navigation) and therefore no home button.
If the rumours are true, it means that this version of the iPhone would almost certainly come free, putting it in direct competition with cheaper, rival smartphones and finally bringing the iPhone to the mass market.
Whether Apple will keep the iPhone 4 as it did with the iPhone 3GS, when it will be launched and whether the iPhone 5 mini will be a cut-down iPhone 4, remains to be seen; The full-fat iPhone 5 is expected to be released on the 6th of June 2011.