Perfectly Timed iPhone Rumour Hints At Tiny iPhones, MobileMe Overhaul

Wouldn’t you know it, but just as Samsung was rebooting its well-received Galaxy S line of tablets and smartphones at MWC, an Apple iPhone rumour arrives courtesy the Wall Street Journal.

The WSJ all but confirms rumours we heard inklings of earlier this month, in which Apple was said to be developing a small, less expensive iPhone that would be tinier than the already diminutive iPhone 4.

Codenamed the N97, this smaller line of iPhones would be sold alongside normal-sized iPhones (presumably the redesigned one arriving this July), and would sell for roughly half the price.

Also making the list of rumours over at the WSJ is word that Apple’s MobileMe online storage service could receive an overhaul. Should the rumour pan out users could expect the $US99 to $US149 service to become a free one that would allow for the creation of a “locker,” says the WSJ, that would store personal photos, video and other personal digital effects.

Rounding everything out is a mention of Apple CEO Steve Jobs, who the WSJ reports has made the smaller iPhones and Mobile Me redo a “top priority” even as he recuperates from an undisclosed health ailment.