the-s-dog writes writes to mention that while there have been many people wishing on a star for an iPhone nano, it seems that at least one UK news pub is confident that it will happen, and in time for this Christmas no less. Still completely unfounded rumor, but an interesting possibility. "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."