iPhone Nano on the way?

According to a Wall Street Journal article today, as well as another report from Bloomberg last week, it looks like Apple is readying a small form-factor phone to the iPhone line.  While US consumers pay $200 or less for an iPhone on contract basis, the retail price has been estimated as high as $650.  The iPhone Nano may allow Apple to move into the lower-end feature phone space where free phones are common with carrier subsidy, and offer a more affordable non-contract retail alternative to the iPhone 5.  Apple is rumored to be launching a voice control interface with this phone - hopefully it will be available across the IOS line of products.

The iPhone Nano is expected to be as small as half the size of the iPhone and have a common dual-mode radio with the iPhone 5 and possibly a "universal SIM", making it globally compatible and an attractive alternative to other lower-priced options.  Apple Insider posits that this will allow Apple to enter smaller, developing markets where low-end handsets currently rule.

A refresh of the MobileMe platform, possibly dismissing the fees and adding PhotoStream technology to work in concert with iTunes, as well as a personal "storage locker" for data, could be part of the next iPhone launch.

Apple denied comment on this, picture above not actual phone.