While analysts have been speculating that Apple may unleash a smaller (and cheaper) handset in the not too distant future in order to grab a sect of market share not interested in the relatively pricey iPhone, the rumors are seeming to gain traction. According to Kevin Chang, a JP Morgan analyst based in Taiwan, Apple is actually looking to "launch a cheaper version of the iPhone in the fourth quarter that could be based on its iPod Nano music player." The report cited anonymous sources "in the supply channel" and also referenced the now-famed patent that suggests such a device could be materializing. Still, we'd highly recommend taking all of this in with a healthy heap of salt for the time being, but don't be incredibly shocked if your next iPod Nano unexpectedly rings while you're stereotypically browsing through Gorillaz tracks.
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