Low-Cost iPhone nano Coming for Christmas?

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The feature that has attracted the most attention to the new iPhone 3G is its $200 price tag. While this is fairly low, Apple is supposedly working on a version that will be even less expensive.

Apple iPod nanoThe current version of this smartphone is inexpensive only in up-front costs. In order to get the $200 price, customers have to agree to a two-year service contract with payments of at least $70 a month, and in the end they wind up paying several thousand dollars.

Apple is supposedly developing on a version that will be inexpensive both in up-front costs and won’t require a contract.

This device — dubbed the iPhone nano — will sell for £150  in the U.K, according to the Daily Mail, and will be available to customers on “pay as you go” plans.

The device will reportedly have the same general shape as the Apple’s iPod nano (see image at right). However, other details are unknown at this time.

The iPhone nano will be on store shelves in time for the holiday shopping season, if this report is correct.

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