Apple plans to release a cut-down Nano edition of its iPhone 3G before the end of the year, according to a report in the Mail Online on Sunday. The phone will be offered by O2, the Daily Mail site said, quoting an unidentified "industry source".
The idea is that the Nanoesque iPhone would end up in Christmas stockings, as an alternative to the popular, recently launched 8GB and 16GB devices.
There are a couple of things still unclear, such as the specs or even why Apple and O2 would make this move. The Mail Online's source says that the iPhone 3G is "too expensive to be a realistic proposition in the pay-as-you-go market", with the implication that the new device would fill that gap. But O2 says on its site that an iPhone 3G for Pay & Go will be available later this year". And why wouldn't Apple wait for the initial 3G hullaballoo to die down fully before putting out a new version?