About this time a year ago rumors began circulating about a smaller nano-sized iPhone. The UK's Daily Mail has resurrected the rumor again, just in time for the holiday shopping season:
The product will be launched in the UK at up to £150 for pay-as-you-go customers by O2, the mobile phone group owned by Spain's Telefonica. 'This will be a big one,' said an industry source.
A Flickr picture posted in January (at right) claims that the iPhone nano will have a 2.75-inch screen (compared to the iPhone's 3.5-inch), MultiTouch and come in 4 and 8GB capacities. One downside to the Flickr concept, is that it doesn't come with Internet access and uses a T9 software keypad - just like the Prada.
While it stands to reason that Apple is exploring ways to expand the iPhone's penetration into lower-cost markets, I can't image them shipping any iPhone without Internet access.
CNet's Crave blog expects to see another iPod event at Apple in September and points to iLounge's rumor of a re-designed, taller iPod nano and a memo sent to Apple's channel partners regarding shortages of iPods and MacBooks for the next 30 days.