With all this news about Android now outselling the iPhone particularly in the US, I keep wondering if Apple has to produce a less expensive phone to counter the Droid army and the low cost Chinese phones that are said to be coming. It would seem like all these rumors that the iPhone 5 will have a 4" display set the iPhone Nano up just right? 3.2" non-retina display, 4-8 GB Flash, last years processor (which would be the A4?), plastic like 3GS (does that keep the cost down?). I would think such a phone would be free with a contract? Wonder if such a phone will eat into iPhone sales!