Shaw Wu with Kaufman Bros. said Wednesday that Apple is working on new iPhone models with both larger and smaller touchscreens by checking with sources in Apple’s overseas supply chain. According to Kaufman Bros sources, the new models could be both a new high-end addition and a new low-end model. Those products could launch in 2011, and on new carriers other than the currently exclusive AT&T.

With Google's Android rapidly increasing its market share, this strategy, if indeed, could allow Apple to address a much wider market.