Edit: After half day, my wife’s Mac started having the same problem. I have then applied the solution that I found in the Apple
Tim Cook Suggests Possibility Of Smaller/Cheaper iPhones In The Future
Speaking at the D11 conference today Apple CEO, Tim Cook added more fuel to flames which are currently burning about the cheaper/smaller iPhone. Walt:
When you guys did the iPod, Steve joked it was good to have products that was above five percent share. One of the things you did was to create a range of iPods, not just last year’s model. In one famous moment, that you probably were involved in, you killed off the mini. You just killed it and brought in the nano. You wound up with this whole range of things. You haven’t done that with the iPhone.
We haven’t so far. That doesn’t shut out the future. It takes a lot of really hard work to do a phone when you manage the hardware and software and services in it. We’ve put our focused on doing that right. We haven’t been focused on working multiple lines.
Judging from the answer give by Apple CEO it seems that Apple is not planning on releasing any other sized or priced iPhones anytime soon as are really focusing on iOS 7 and services.