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Claim your spot in line at the Apple store now: Apple is indeed making a smaller, less-expensive iPhone, according to The Wall Street Journal. The new phone will be about half the size of the current iPhone 4 and will have an “edge-to-edge” touch screen. The company is also considering updating its MobileMe online storage service and making it free instead of its current $99 yearly subscription. The service currently stores contacts and calendars and synchs them between phones and computers. Apple may make it so it stores photos and videos as well, thereby eliminating the need for the phones to have a lot of memory.