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It is being reported today that Apple was working on smaller and less expensive iPhones to be sold along with the main iPhone product. Apple is also planning a complete overhaul of its MobileMe and Apple’s online storage service. Wall Street Journal reported today and said that Apple sees there is more market in providing apps and can increase its market by decreasing the iPhone costs.

The reports match the rumors from last week where it was reported that Apple was planning an iPhone Nano which would cost around $100. The new iPhone Nano is said to be lighter than the iPhone 4 and had an edge-to-edge screen.

Coincidently, AT&T dropped the price of iPhone 3GS to $49.

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