Rumor: Possible iPhone Mini in the works?

Seems as if every tech website has reported this today, only seems fit that we do to, especially since it contains the ever so popular Apple iPhone.

So the question every tech guy is asking today is it possible that a iPhone Mini might debut this year? According to Bloomberg, Apple is set to drop  a smaller iPhone model in the middle of this year, which is around the same time the iPhone 5 release date and the infamous WWDC 2011 conference.

iPhone Mini: iPhone 4 Components, 1/3 Smaller, $200

Citing a source who has supposedly a prototype, the mini version of the iPhone that we have given the tag of “iPhone Mini” will be cheaper and start at $200 without requiring a service contract. The phone is said to feature components from the existing iPhone 4, but be about 1/3 smaller than existing models. Bloomberg’s source cautions that “the introduction may be delayed or scrapped” and that not many Apple employees know of the project.

iPhone Mini & iPhone 5: Dual-Mode with Universal SIM?

Another tidbit from the Bloomberg article also says that Apple is working on dual-mode iPhones, which would allow a single device to work on both GSM and CDMA networks, in addition to a Universal SIM card that would allow iPhone users to jump between different GSM networks without switching sim cards.

Bloomberg should generally be considered a fairly reliable source of Apple rumors. Last year their sources accurately predicted the Verizon iPhone announcement would be in January 2011.