Unwired View is reporting that Apple (AAPL) has applied for patents that might allow the company to sell a cheaper version of the iPhone that can only be used to handle calls and play music.

While it is interesting speculation, it is almost certainly untrue.

It would be difficult to imagine Apple undercutting sales of a device that has a price of $599 and a gross margin of 55%. Jobs & Co. are not that slow witted.

Douglas A. McIntyre