"On August 3, 2006, the UK’s Mail Online claimed that '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 report went on to state that the product would be launched in the UK for pay-as-you-go customers by O2, the mobile phone group owned by Spain’s Telefonica," Neo reports for MacNN.
"On August 5, 2008, Lehman Brother analyst Ben Reitzes said in a research report that while he believes that Apple is working on a lower-end iPhone form factor, he didn’t think it would arrive until Spring 2009," Neo reports.
"Yet the UK rumor may still have some legs when you consider that a prominent Apple iPod and iPhone accessories company by the name of Digital Lifestyle Outfitters (DLO) has been working on a nano-styled iPhone dock," Neo reports.
Full article, with illustration from DLO's patent application,
LINK