A Year old, mummified iPhone Nano rumor has been unearthed from the tomb by the DailyMail in the UK, claiming that a new compact pay-as-you-go iPhone would be shipping in time for Christmas. The paper is known for "sensationalist reporting" by an alleged gang of shaved apes with bad teeth wearing coke-bottle eye glasses and pinkie rings.
"The product will be launched in the UK at up to £150 for pay-as-you-go customers by O2, the mobile phone group owned by Spain's Telefonica. 'This will be a big one,' said an industry source." source Mac Rumors
It was early July 2007 when the exact same reports surfaced claiming an iPhone Nano would hit retail shelves by 4th quarter though it never happened. All of the hoopla was based on patent filings by Apple revealing a diagram of a touchpad, scroll wheel dial on a Nano like device. The patent was real, the launch date failed.
With rumors circulating that Apple is working on a new taller and thinner framed iPod Nano, it's certainly possible that a basic phone interface could be introduced. Rumors of a cheaper, compact iPhone have been bubbling under from Cupertino though no confirmation has emerged yet. It may finally be time to Dial 'N' for a new touchpad, scroll wheel Nano iPhone. I think it is.