Apple are thought to already be working on the iPhone Mini and the latest rumours suggest that the smartphone will land in 2014.
The information was unveiled by Strategy Analytics' Neil Mawston who claims that Apple will launch the iPhone Mini sometime in the next 3 years. He also added that they expect Apple to launch the iPhone Mini in 2014 which is when they predict that "Apple's penetration of the global postpaid smartphone market will be nearing saturation".
The launch of the iPhone Mini would help Apple gain more market share in developing markets and enable them to expand into the pre-paid market. Expanding the range would also give them greater bargaining power over suppliers and help them lower their unit costs.
Apple have already launched the slightly more affordable iPad Mini tablet, so it does seem quite likely that we'd see a more compact version of the iPhone somewhere along the line. Apple's reluctance in the past has always been based on protecting their premium brand image and that's the reason that the iPad Mini isn't priced much below the full-sized iPad.
Apple are facing increasing pressure from Samsung who offer a full range of smartphones from affordable right up to the premium Galaxy SIII. The Korean company have now become the best selling-smartphone manufacturer worldwide, so Apple could well be forced to respond by expanding their range.
3G expect Apple to launch an iPhone Mini within the next year , but we would be surprised if it was priced below £250. We also predict that its touch-screen will be around 3.5 inches in size. However, this is pure speculation and as soon as we get more information you'll be the first to know !