Develop a product so cheesy. Come on people. Because there's an iPod nano they're going to follow suit with the iPhone? How much could/would they really change to justify such a product? It would end up being a ROKR. I don't even think it's that marketable. With a music device, yes, because people may not need as much capacity, but a stripped down version of the current end-all-be-all of phones (the features it lacks aside, that's what mass-media has deemed it, and myself)? Truth be told, a substantial reason the iPod has been so successful is the name its built for itself -- its similar to a status product in a way, where consumers (particularly younger demographics) would rather be able to say "I have an iPod" than a device that may be cheaper and just as feature-filled. The iPod nano doesn't have less features, it's just more compact and has less storage capacity. Ignore the video capability for a second given that at the inception of the mini/nano it wasn't a feature on the iPod. Not to mention I don't think many people at all take the video features very seriously (sorry, but it's just true -- the size of the screen). So with this said, could Apple really release a cheaper phone with half the features as the iPhone and have it sell enough to justify production? An iPhone nano would be a waste. As far as I'm concerned the 4GB iPhone is the iPhone nano. However, could Apple possibly have another phone model in the future - that wasn't the iPhone 2? Yes. It's not going to be an iPhone nano in the way it has been rumored about and described though. The things I've heard about it and the mock-ups I've seen remind me of the way the iPhone was originally imagined. After it was actually unveiled everyone thought "why did we even pay creedence to all of that, Apple would of course design a much better product". They did look like iPods with keypads on them after all. edit: these patents people are looking likely have to do with the new ipods or the original designs of the iphone.