Bigger isn’t necessarily better it seems and nowhere is that more true than in the smartphone market where Apple, it seems, is fighting back against a slew of competitors with ever larger screens with a smaller counterpart.

Reports in the Wall Street journal suggest the putative device would be around half the size of the current iPhone 4 and be sold and, appropriately enough, retail for half the price.

The diminutive phone won’t contain the same memory as its bigger brethren and thus will connect to the Cloud via the tech giants MobileMe online storage facility.

Rather than supplanting iPhone’s current range of devices the new smartphone will be sold alongside Apple’s existing range.