iPhone Nano 'in the works'

I saw a Tweet via Mike Butcher about the iPhone Nano. The author of the post on eetimes cites ‘various reports’ but doesn’t define them.

I’ve heard a lot about the Nano and I’m looking forward to seeing the fruits of Apple’s labour.

I’ve been highly frustrated with the fact that the iPhone is completely 100% out of the league of most normobs. In fact, the anecdotal research I’ve been doing recently is pretty horrific with the summary being:

Love the iPhone. Won’t even consider it.

Instead, the majority of PAYG users I spoke with are thinking very carefully about spending £19 on a handset, let alone £299 for the iPhone 3G.

An iPhone Nano — with iTunes, a few gig of storage and a £99 followed by £49 price tag…

Is that possible?

I wonder.