Word is out on the streets that Apple may be working on a new, smaller version of the iPhone. According to a JP Morgan report such a device could be based on the iPod nano.
The interesting thing is that this phone will be much cheaper. Instead of $500-600 the "iPhone nano" could be launched at $300 or lower.
Kevin Chang, a JP Morgan analyst based in Taiwan, cited people in the supply channel he did not name and an application with the U.S Patent and Trademark office for his report dated July 8.
Apple filed a patent application document dated July 5 that refers to a multifunctional handheld device with a circular touch pad control, similar to the Nano's scroll wheel.
Apple spokeswoman Natalie Kerris declined comment.
Long lines of people turned out on June 29 when U.S. sales began for the iPhone, a mobile phone with a music player and Web browser. Analysts have estimated that sales in the first weekend were as high as 700,000 units.