Apple plans Nano-based phone

bigkahunafish writes: It seems Apple is planning a cheaper version of the iPhone based on the iPod Nano. This phone would be priced below $300 making it more affordable than the $500-600 iPhone. This could bring Apple phone technology into the hands of more users, however it should be noted that this cheaper phone could have "rather limited functionality." I just hope they don't make a phone based on the iPod Shuffle.