Apple is expected, by the mid of 2011 to release a smaller version of the current iPhone, about half of the size, and at half of the price, of the current device, according to the Wall Street Journal. After having charged $99 per year for MobileMe, Apple will introduce this updated service storing personal photos, music, and videos for free. Apple has updated its global marketing strategy and is moving from the high-end customer strata to customers with moderate incomes.

There are several Android devices that have already been created for cheaper, more widespread distribution and Apple will need to continue to find ways to compete in a broadening mobile market. There are also some Android-driven initiatives that are looking to infringe on the business sector, an area Apple has been hoping to dominate with the iPad.

This piece of news was presented at the Mobile World Congress 2011, held in Barcelona, where other important players were present. Among them, Research In Motion announced there are more products in the way, such as BlackBerry 4G PlayBook tablets, in the second half of the year. At the moment, BlackBerry App World is now available in 27 additional markets, going as far as being available in 101 markets worldwide.

Going back to Apple, which does not accept Flash on its iPhone, iPod or iPad, Adobe emphasized today the success of its Flash on mobile phones, as AdobeAir apps can be downloaded on over 84m smartphones and tablet with Android OS and iOS and by the end of 2011 the number will reach 200. The numbers are translated into 132m units worldwide and over 50 tablets to incorporate Flash Player.

Another important player in the mobile industry that made its presence felt was Motorola announcing the acquisition of Android enterprise security start-up 3LM. The aim of this step is to help Motorola sell more Android devices to the business sector, ‘to offer companies the flexibility of Android with the kind of security features companies get with BlackBerry and Windows Mobile 6.5’.