Upon further thought...
I'd like to throw my opinions into this, my very first post for me as well
![Smile :) :)](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
.
On the merits of Apple releasing a product into China first, it may very well be the smartest thing Apple did. On face value it seems to spite the US and other markets, but one could argue that Apple's decision to introduce this product into China may be the cart before the horse.
What I mean by that is the iPhone has rocked the world and added to the iPod's halo effect. Imagine getting small, inexpensive phones into millions of hands of the Chinese? I would imagine a large trickle-down effect leading to more MAc sales. And with a potential target audience of China, one could argue it's a market with tapping first. Plus, if this thread is any indication, they can protect iPhone 3G sales (and future releases) for a bit while driving demand in the US and other locations abroad.
In addition one could surmise the following:
Based on rules and contracts, the iPhone in China may face more hurdles than releasing in the States. An iPhone Nano may remove those hurdles by scaling back 3G, GPS, texting, 3 way calling, etc.
The contract for AT&T and Apple may say iPhone. iPhone Nano may not fall under contract as it's a separate product class. Don't know what the contract says but I wouldn't put it past Apple to have left a door for flexibility. The contract was also obviously written for distribution and release in the US, China is excluded from any contract stipulations I'm sure.
I for one would love an iPhone Nano even if it only had a contact book and the phone features. The IPhone is the easiest phone I've ever used and the 3 way calling puts my company's office phones to shame. I had to host a conference call because the commercial phones would not work. I can imagine the Nano being for the rest of the world that just wants an easy to use well thought out phone without all the features and less the price.
Rich