WSJ corroborates the mini-iPhone, says Apple may make MobileMe free (update: 'edge-to-edge' screen)

The Wall Street Journal has weighed in on rumors of Apple's smaller iPhone, and citing "people familiar with the matter" the publication says that the rumors are likely true. One such familiar person reportedly saw a device half the size of the iPhone 4, bearing the codename "N97," and said that the handset will be only about half the size of the original, and at only around half the price too. Amazingly, those anonymous sources continued to divulge information, expressing the idea that Apple could finally make its MobileMe cloud service suite free, and that it just might be the platform from which Apple could finally launch a streaming music platform and lessen the need for all those gigabytes of flash storage in your pocket. We'll let you know if or when any of that happens, okay?

Update: The WSJ's source proved even more talkative after getting an eyeful of the Samsung and Sony announcements this morn; the publication's article has been updated to read that the device is "significantly lighter" than the iPhone 4, has an "edge-to-edge" touchscreen, and "voice-based navigation" of some sort.