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It seems that when the real news begins to slow, the rumor train begins to churn. Once again it seems we have reached that time, and the most recent story comes courtesy of the Daily Mail, who are reporting that Apple is planning to release an iPhone nano in time for the 2008 Holiday season.

This is one of those rumors that just will not die, it sort of reminds me of the iTunes and Beatles rumor, which almost seems like it has to happen at some point, if for no other reason than to make people stop talking about it.

They claim that the iPhone nano will be a stripped down version of the current iPhone 3G, and it will be shaped similar to a current iPod in size. They are also placing the cost at around £150.

Not that I am believing this, however all things considered they do offer one bit of good logic for releasing such as device. They have stated that the current iPhone 3G is simply too expensive to be offered as a pay as you go model and the smaller stripped down version will be better suited.

Of course, this is all just nothing more than a rumor, keep in mind their information is coming from an un-named source who they credit as being an “industry insider.”

[9to5Mac] [Image courtesy of Information Architects]