Apple Working On Two iPhone 5 Models?

Folks at iPhoneDownloadBlog claim that according to their source Apple is working on not one but two iPhone5 models.

According to their source who works at an Apple part supplier, Apple may release two iPhone models: a 'standard' and 'pro' model in fall this year.

IDB reports:

Due to the extensive amount of NDAs our source had to sign to work with Apple, he could not give us very many details. He does believe that Apple is going to build two iPhone models, which he referred to as a 'normal' and a 'pro' version.

Our source says that Apple is ordering components of similar function, but some of them are the very best of what you can get right now.

While the rest of the ordered components are just the standard versions, Apple is also ordering better quality components of the same function. Our source says that both types of components wouldn't go in one device together, which makes him believe Apple is up to something with a 'pro' version.

IDB also claims that their source at Apple has confirmed that the fifth generation iPhone will be launched after the "Back to School" season, suggesting that Apple may launch it in September along with the next generation iPod product line.

They've also published the concept of the next generation iPhone but haven't mentioned if it was created using information provided by their source.

In our opinion, it seems highly unlikely that Apple will build 'pro' and 'standard' iPhone model, which will be differentiated based on the quality of components. We're more inclined to believe that Apple will launch a smaller and cheaper version of the iPhone, which is not as feature rich as the regular iPhone.

We've heard several rumors that Apple is working on a cheaper iPhone but those rumors have also claimed the cheaper iPhone will be smaller. Back in February, Wall Street Journal who has a good track record with Apple related news had also reported that Apple is working on a cheaper and smaller iPhone, which could be priced at $200 without requiring a contract. According to the person who has seen the prototype of the cheaper iPhone, it was smaller and significantly lighter than iPhone 4 and had an edge-to-edge screen.

WSJ also reported that Apple is planning to revamp its MobileMe service and considering to make the service free. The revamped MobileMe service might allow users to store photos, videos and music online, eliminating the need for the iOS device to carry a lot of memory. It would be another good reason to rebrand it as iCloud rather than MobileMe.

As always, treat these rumors and speculations with a grain of salt.

But the possibilities of a smaller and cheaper iPhone probably dubbed iPhone nano would make things very interesting in the smartphone marketplace. What do you think?