UPDATE: JP Morgan has retracted Chang's assertions. See TUAW article here.
JP Morgan analyst Kevin Chang has everyone talking about a potential iPhone Nano. Kevin found a patent that was filed by Apple on November 1st, 2006 but was only published by the patent office on July 5. The patent involves a scroll wheel similar to the iPod and a "a user interface for controlling an electronic device, particularly a multifunctional electronic device that is capable of operating in multiple modes as for example a phone mode for communications and a media player mode for playing audio files, video files, and the like".
After Chen called around to suppliers, he concluded that Apple is planning an iPhone Nano, which would be cheaper than the current iPhone but with limited functionality but most of all, lacking the iPhones uber cool touch-screen. He predicts the product will launch in the 4th quarter of this year.
We're not sure if Apple would actually bring something out that soon. We really think Apple's next move is the 6th generation iPod with iPhone touch screen but no wireless phone and no WiFi. We also think Apple would sell this around October or November for the Christmas buying rush. YMMV.
Read more about this report that made Apple's stock jump here.
