http://www.appleinsider.com/articles/08/08/05/latest_iphone_nano_rumors_ill_timed.html
While checks within Apple's supply chain suggest the company is researching a low-end iPhone design, rumors that such a device will surface this year are overly optimistic, according to Lehman Brothers.
The equity research firm used a research note earlier this week to address a report by UK's Daily Mail, which asserted that a low-cost 'iPhone nano' is set to follow on the heels of the iPhone 3G with a release ahead of this year's holiday shopping season