Swirling rumors suggest that Apple is working on a next-generation iPhone which will feature a slide-out keyboard.

Taiwanese blog Apple. pro claims that Apple has three different models in mind for the production of the iPhone 5, with one of the three having a physical slide-out keyboard.

However taking Apple’s chief executive Steve Jobs’ revulsion for physical keyboards on mobile phone into consideration, the Apple. pro’s claim does not appear to be authentic. At the time of original iPhone’s launch in January
2007, Mr. Jobs had clearly stated that they would prefer a multitouch virtual keyboard to a physical one.

Meanwhile, reports about a smaller as well as cheaper iPhone are also surfacing. Bloomberg. com claims that Apple has plans to target the lower end of smartphone market by launching the ‘iPhone Mini’.

According to Bloomberg’s claims, an Apple insider, who claimed to have seen the low-cost model of the iPhone, informed that the iPhone Mini is around two-thirds in size of the existing iPhone and does not feature the home button.

The source added that the smaller and cheaper iPhone would cost nearly $200- considerably less than the current 16GB and 32GB models of the iPhone 4, which cost $499 and $599, respectively. In addition, the potential handset will feature a universal SIM that will allow users to switch from one network to other without any need to change the SIM card. Furthermore, the handset will be launched on a PAYG deal rather two-year service contract.