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    A SMALLER iPHONE IS ON THE HORIZON!!

    By L.T. Dinwiddie

    This is exactly why I didn’t run out and cop the new iPhone because I just new they would have a cheaper one by fourth quarter.

    And now my thoughts have been confirmed as Rueters have posted a story on what to expect from Apple come this holiday season.

    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.

    A way to follow up the iPhone with a cheaper version would be to convert the Nano into a phone and price it at $300 or lower. The iPhone sells for $500 and $600, depending on storage space.

    "We believe that iPod Nano will be converted into a phone because it's probably the only way for Apple to launch a lower end phone without severely cannibalizing iPod Nano," he said noting that the new phone could have "rather limited functionality."

    Another analyst Gene Munster of Piper Jaffray said he expects Apple to bring out iPods that resemble iPhone, which features such as a touch-sensitive screen, later this year. Such products would help stop iPhone eating into iPod sales. FULL STORY

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