Cheaper iPhone coming

According to a JP Morgan report Apple has filed a patent application document dated July 5 that refers to a multi functional hand held device with a circular touch pad control, similar to the Nano's scroll wheel.

Talking to the Sydney Morning Herald, Kevin Chang, a JP Morgan analyst based in Taiwan, unnamed people in the supply channel indicated that the report was true and they are preparing to make the cheaper phone.

Chang said Apple plans to convert the Nano into a phone and price it at $300 or lower. He said this would be a way for Apple to launch a lower end phone without severely cannibalising iPod Nano.

The new phone will have limited functionality, he added. µ