Iphone Nano?!

Rumours have also been flying around about a possible announcment of a little brother to Apples recent success the Iphone. I dont have much information on this but i can assume it will be a scaled down version of the Iphone possibly with lesss features and a smaller capacity. This would be a wise move for the company as it would introduce the Iphone into a market who cant afford to spend big money on the Iphone but still want the same functionality in a phone. Great stuf