WSJ Starts Up “iPhone nano”, Free MobileMe Rumors Again



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We'll see. MobileMe is not a good bargain at all.



It's very unlikely that Apple would simply drop the annual $99 subscription fee for MobileMe. Among other reasons, it would make for very messy accounting for the existing subscribers.

It's also unlikely that iTunes music "streaming from the cloud" would replace or make up for reduced storage on iPhones, given the high costs and bandwidth caps imposed by the mobile networks.

That said, some kind of additional service, tied to MobileMe but available for free to purchasers of the latest version of the iPhone—exactly how 'Find my iPhone' works now—would be perfectly reasonable. Wireless synchronization to iTunes is certainly feasible too. But "N97," which fits the type of engineering names given to pre-release Apple products, could just as easily be the iPhone 5 as an additional model of iPhone.

While I don't see anything in Apple's past behavior that would preclude an additional model of iPhone, the strategy of this year's phone at $199 or last year's phone at $99 has worked pretty well for them. I'm not sure how "this year's mini-phone for free" would affect that model.

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