Apple iPhone lite, media pad coming soon to Verizon?

The blogosphere is like one big sewing circle. After all the buzz yesterday about Apple bringing the iPhone to Verizon by 2010, today brings more exciting Apple rumors to ponder. According to BusinessWeek, Verizon might get an "iPhone lite," and a touchscreen tablet as early as this summer.

According to BusinessWeek:

One device is a smaller, less expensive calling device described by a person who has seen it as an "iPhone lite." The other is a media pad that would let users listen to music, view photos, and watch high-definition videos, the person says. It would place calls over a Wi-Fi connection. One of these devices may be introduced as early as this summer, one person says.

The media pad is said to be smaller than the size of a Kindle, but will have a larger screen. BusinessWeek cites two anonymous sources who are "familiar with the subject." The source thinks the media pad will be a category-defining breakthrough gadget:

"The media pad category might go to Verizon," said the person who has seen the device. "We are talking about a device where people will say, 'Damn, why didn't we do this?' Apple is probably going to define the damn category."

The iPhone lite is said to be thinner, smaller, and cheaper than the current iPhone, thanks to a more cost-efficient chip. 

AT&T, of course, would suffer a blow since it has an exclusive contract with Apple to distribute the iPhone. Spencer Ante, one of the authors of the BusinessWeek article, said Apple may just be using these Verizon rumors to get better terms with an extension contract, or a re-negotiation with AT&T, since the contract will be expiring at the end of the year. 

But, Verizon is the largest cellphone company in the U.S., and it has the most reliable network in the U.S., so Apple may be smart to make a deal with Verizon. 

Then again, none of this is actually confirmed, so who knows what will come of these ideas. What do you think? Let us know in the comments below.