According to Reuters, drawing information from a JP Morgan report, Apple is planning on releasing a iPhone at the end of this year that will be $300 or less and based on the iPod Nano. I’m not going to call it the iPhone Nano because that sounds silly, I hope they don’t name it that but who knows.

I find this very odd that Apple would undercut the iPhone so quickly. If you compare it to the iPod which was first released on October 23, 2001, a smaller lower priced iPod wasn’t released until about 2 years later in January of 2004. (Source: Wikipedia)

It seems like Apple would want the iPhone craziness to calm down for a bit before coming out with a second iPhone, my guess is that that craziness wouldn’t be over until after Christmas.

Now it wouldn’t surprise me for them to announce a new iPhone but not ship it until January similar to how the AppleTV was announced and released. I don’t think that Apple would want to do anything different and upset all of the iPhone owners who just a few months earlier spent $500-$600 on the first generation iPhone.

I’m not disputing the idea that Apple would be working on a smaller lower cost iPhone but I don’t believe that they would release it so close to the launch of the initial iPhone.

Reuters – Apple plans cheaper, Nano-based phone: JP Morgan

Update: After all the chatter on the internet about the iPhone Nano, JP Morgan rejects iPhone nano report