Apple will be launching a redesigned iPhone in preparation for Christmas, claims an industry source at the Daily Mail.
The handset, dubbed the iPhone nano, is believed to be a stripped-down version of the current iPhone, with a shape similar to the iPod nano.
The smaller handset is said to reduce costs and consequently appeal to pay-as-you-go customers. According to the newspaper, the iPhone nano would have "a touch wheel on the back and display on the front so that numbers would be dialled from behind."
We're very sceptic ourselves. O2 is having trouble keeping the current iPhone 3G in stock, and there doesn't appear to be any need for another model. We're putting this one down as just another wishful rumour.
Source: dailymail.co.uk
