Maybe not now, but I wouldn't be surprised if Apple released an Iphone nano type device at some point... maybe in the summer when 3G comes out. Just as apple introduced the $79 shuffle to capture the low end mp3 market, it would be very attractive to offer a $99 phone/ipod to eat into the low end phone market. It won't have a touch screen and it may not even have safari. But it will come some day.