The rumor that is circulating around is that Apple is planning a cheaper version of the incredibly successful I-phone and basing it on the I-pod Nano. This is logical, considering that in the American market the large, large majority of consumers spend 100 dollars or less on their phones; the I-phone carried a price tag of $500-600. In order to compete for market share in this environment vs competitors such as Nokia, Samsung, and Sony, Apple must release a cheaper version of device. Since they already have the I-pod and the cheaper I-pod Nano it's only logical for there to be talk revolving around the possibility of a forthcoming I-Phone Nano.

Some confirmation comes from Reuters who report that "Apple filed a patent application document dated July 5 that refers to a multi functional hand held device with a circular touch pad control, similar to the Nano's scroll wheel." Apple currently leads the hand held digital music player market. If I was their new cellular phone competitors I would be more than a little bit worried about this new turn of events.