Fragmentation
One of the biggest annoyances in developing for Android is writing and testing for different hardware capabilities and screen resolutions. This is called fragmentation and iOS developers on the other hand have it relatively easy in that respect. An iPhone Nano would complicate development, and some apps simply wouldn’t work on a smaller device.
The App Paradigm
Data Costs
While I’m lucky enough to have been grandfathered into an AT&T unlimited data plan, new developers might not be so. Testing cloud-based apps on 3G would be much more important on an iPhone Nano. This would invariably suck down bandwidth, which could unintentionally punish the very developers Apple’s flourishing App Store community relies upon.
On The Other Hand…
That being said, an iPhone Nano could be a good thing if done respectfully to users and developers alike. Perhaps we’ll see a 320×480 screen Nano with both onboard storage and fast mobile data- I wouldn’t knock the cloud entirely, but also wouldn’t rely on it completely. I suspect the timing isn’t quite right from a cost-effectiveness standpoint, but then again, as Apple has been aggressively going after mass-market appeal pricing of late with products like Apple TV, this rumor could be ripe afterall, especially when you consider heavy service-provider subsidies. While smartphone sales continue to rise, they are still only about 20% of purchased cell phones and I’m sure Apple intends to change that.
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