Nobody can seem to get enough of the iPhone nano. Ever since the first news of a mini-iPhone patent surfaced almost four years ago, the concept refuses to disappear for more than a few months at a time. Now Bloomberg cites sources within Apple who say the smaller handset is indeed in the works.
According to the report, prototypes of the iPhone nano exist and have been considered as a way for Apple to increase competition against popular, cheaper Android devices. By using current-generation components Apple could reduce manufacturing costs on a new handset coming in at two-thirds the size of a normal iPhone.
Instead of offering consumers only the latest and greatest technology in an iPhone 5 for a subsidized contract price of $200 or more, the iPhone nano could hit stores at the same price with no obligation. Analysts have speculated an iPhone nano might be lacking specific features like GPS and come with its own limited data plan, however so far we have yet to see the device. Sources told Bloomberg plans were to launch the iPhone nano in summer 2011, however these plans aren't final and could be scrapped.
Apple often creates prototype products that never see the light of day. Apple COO Tim Cook seemed to kill the iPhone nano rumor once and for all with his comments stating that Apple only makes high-end phones and wasn't interested in entering other tiers. Apple of course has no comment on the matter. This summer should bring an iPhone 5 announcement, and if Apple plans to release a smaller phone design it's possible the world will see it then.