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.

[Thanks, Matt, image courtesy of InformationArchitects]

Although the iPhone is really a wonderful piece of tech-beauty (in form, and partially in function), there are probably market needs for an Apple-esque handset that is not packed with so many features. The above concept image shows an intriguing possible solution to this market need, as it appears that the design is all-iPod (not iPhone). We like the iPod design with a phone thrown into the mix ala click wheel; we really do. We'd love to see this device from Apple as the iPhone nano, and with a patent recently on a "touch pad with symbols based mode," maybe the iPhone nano is on its way. For the legit needs of a cellphone simpleton, this may just fir the bill if it ever materializes.