iPhone 5 won't be smaller but could be cheaper, insider claims

The iPhone 5 is rumoured not to be smaller than the iPhone 4 - but will it be thinner?

Insiders claim that the iPhone 5 will be smaller in price but not in stature than the iPhone 4.

Many rumours have suggested that we'll see a slimmed-down, budget version of the Apple handset, a so-called iPhone Nano.

But the New York Times cites an anonymous source who says there will be no smaller iPhone from the company.

No-no to Nano?

Having supposedly worked on several versions of the iPhone 5, the source told them, "Although the innards of the phone, including memory size or camera quality, could change to offer a less expensive model, the size of the device would not vary."

Another source agrees, saying that a smaller device would probably be more expensive to manufacture, more difficult to use and would force developers to rewrite applications to fit the new form.

Flash! Ahhh-aaaaaah

One way Apple is looking to bring costs down aside from by using lower-spec components, is by increasing users' cloud storage in its MobileMe service, which would mean the device itself requires less physical data storage.

Flash storage doesn't come cheap, so this could see a significant iPhone price drop.

It's the latest in a string of rumours surrounding Apple's upcoming iPhone 5 release, which, it is anticipated, will be officially revealed in June.

Via NYT and SlashGear