Rumors of an iPhone Nano Still Going Strong

Last week, the Web was afire after a report from a JP Morgan analyst said that Apple was developing a new version of the iPhone, which will be supposedly similar to the iPod Nano. Some -- but not all -- of the furor died down after JP Morgan released a retraction though.

The excitement will likely ratchet back up again in the wake of a new article from AppleInsider that says a smaller and less expensive iPhone is definitely coming soon.

According to what this site calls "extremely reputable sources," the new device will likely be an iPod with voice capabilities. Unlike the current model, it will lack support for exchanging email and accessing the Web.

It will supposedly be small enough that some have dubbed it the iPhone Nano, and will draw on a patent recently filed by Apple for a new user interface for a Nano-type device.

AppleInsider goes on to say that this new device will be more widely available than its predecessor. Thanks to an exclusivity contract, AT&T will still be the only carrier to offer it, but it will reportedly be sold through a wide variety of retail stores that offer Apple or AT&T products, not just these company's own stores.

The iPhone Nano, or whatever it ends up being called, will supposedly debut before this year's holiday shopping season. There's no definite word on price, but its expected to cost less than the $500 iPhone but more than a non-phone version of the iPod Nano.

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