Apple to launch the iPhone 'nano' in time for Christmas

Apple is about to launch a 'nano' version of the hugely successful iPhone. It is expected to be in the shops in time for Christmas.

The product will be launched in the UK at up to ?150 for pay-as-you-go customers by O2, the mobile phone group owned by Spain's Telefonica. 'This will be a big one,' said an industry source.

'The iPhone 3G has been the fastest-selling phone ever in the UK, but it is too expensive to be a realistic proposition in the pay-as-you-go market.

'However, a cut down version, with the candy bar shape of iPod nano music players, would be a huge hit as a Christmas gift.'

One expert suggested the nano phone would have a touch wheel on the back and display on the front so that numbers would be dialled from behind.

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