Nano iPhone?

The Verizon iPhone 4 just shipped last week and there is already buzz about the iPhone 5. The latest rumor is that Apple is working not only on an updated iPhone 5, but also on a nano version of the iPhone for release at the same time as the iPhone 5.

Apple Insider has more: “…an anonymous tipster claims to have seen the prototype, said to be about a third smaller than the iPhone 4. The person reportedly said that the early version of the device had no “home” button, and cautioned that the device could be delayed or scrapped. The publication also reaffirmed that Apple has also worked on new iPhone software and hardware that would let customers choose a network directly from their handset, bypassing the carriers even more.”

These rumors come after HP’s announcement last week of the HP Veer, a tiny 3.25″ smartphone that fits in the palm of your hand.

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