The rumour in question here easily falls into the second category. As I said, the purpose of such fake rumours is to dissuade general consumers from purchasing an iPhone (or another Apple product) right away, and (even better) to get them to consider a competing product.

Anyway, there are billions of people in developing countries who will never, ever, need to own a “PC” (a desktop or laptop computer of any kind). They will all own a mobile phone. Many of these people would be more likely to buy an iPhone if it was a little closer to an iPad in size.

The “compromise” is that it’s a little too big (for me, personally). But that might be the right compromise for that particular group of users.

Maybe they are looking ahead as volume production, automation, and cheaper component availability inevitably make a 5″ smartphone much less expensive than todays cost of smartphone production??? Inexpensive doesn’t necessarily mean cheap. And the first phone maker to hit the market would win major “mindshare” and consumer gratitude.

http://d-rs.livejournal.com/983.html

My point was that Apple can design compelling new products that can be sold at lower price-points than their existing products, while minimizing the new product’s impact on sales of their more expensive product lines (because of a few well-considered design and specification decisions).

Throughout the year, we get to hear all these stories about Apple building a new iPhone which will be bigger, smaller, faster, cheaper, and it will be released in just a few months. The stories come from all sorts of sources, and the only thing they all have in common is their purpose: to fool unsuspecting potential iPhone buyers into waiting until this purported new iPhone eventually arrives, or (much more likely) to not bother waiting for the iPhone and instead buy an Android phone that is already cheaper and bigger (or smaller).

Most of the time, these stories sound like they have been dutifully paid for by Apple’s competitors.

What? It’s already been done?

Apple could find a way to give the developing world “the only computer they’ll ever need to buy” and still keep pumping out high-end special purpose Mac/iPad/iPhone devices for people who can afford three or more devices.

Reading it on MDN is not the problem. Seeing it in newspapers, hearing it on radio and watching it on TV is the problem

Over here in the West? I’ve got a Mac or iPad on just about every nightstand and coffee table in the house. I’d like to keep my iPhone easily pocketable, please.

On the other hand, this could be a Foxconn produced phone for another manufacturer. Doesn’t Amazon use them?

Just don’t buy an iPhone… that’s it
That’s all you have to do