iPhone Nano on the way to China first?

A smaller, cheaper iPhone could hit China later this year, now that two companies appear to have gotten contracts to make its chips.

(Credit: Apple)

More iPhone Nano rumors are surfacing out of China, as some are starting to wonder whether the much-rumored diminutive iPhone will ship in that region only.

Digitimes picked up on a report from the Economic Daily News that chip makers Taiwan Semiconductor Manufacturing Co. (TSMC) and United Microelectronics Corp. (UMC) are set to get the contract to make chips for an iPhone Nano, which was described as a "low-cost entry-level" iPhone. TSMC and UMC are perhaps the two most well-known chip foundries in the business, and are perhaps getting ready to execute Apple's first iPhone chip design put together by the P.A. Semi team.

No other details were reported. But what of the iPhone Nano itself? Rumors first appeared about such a device in 2007, shortly after the launch of the original iPhone, but quickly died. They were revived late last year when an iPhone case manufacturer added an "iPhone Nano" category to its products.

There's a theory that the real iPhone Nano is merely the knock-off versions sold in markets in China and other places in Asia, which has proven so popular that demand has grown for cases. But Brian Marshal of Broadpoint AmTech expects Apple to launch such a device at some point this year, and thinks Asia might be the first place it arrives.

Marshal said his checks with suppliers show that AT&T has not received the device yet for testing, which he believes indicates that China could be the likely launch venue for the iPhone Nano and a new Apple relationship with China Mobile or another carrier. If this iPhone really does exist, a June launch would make sense given the pattern set in 2007 and 2008.

[AllenKids]

As a Chinese myself, I do see a smaller form factor could be welcomed for asian market. We are obsessed with tiny things and equipped with accordingly tiny hands.

But still I cringe every time thinking the next move of iPhone would be shrink a little, and that's it.

Where is the friging iPhone 2.3 or 3.0 or whatever!

[Vegaman_Dan]

It's not the cost of the phone hardware itself that is stopping people from buying smartphones today- it's that $30-$50 additional required data plan that hurts. When you add that on top of your base plan it's easy to see $80-120 monthly bills compared to a standard $30-40 bill.

Until that changes, the entry price of the phone itself is meaningless.

[techman21]

Hear hear! The data plans cost too much! They're ridiculously and prohibitively expensive. Try $20/month, AT&T.

[steel36]

Agree, Agree. New device costs aren't the dealmaker/breaker; it's requiring me to dole out an extra $360/year. Of course, one look at the housing fiasco can explain that most people aren't looking at the "future" costs of ownership and will snap them up from Wal-mart.

[sting7k]

Exactly right, lots of people want these new smart phones coming out loaded with features. Then they hear about the data plan, which is often near the price of their home broadband connection, and are like no way I will pay that for my phone.

[scurrlin1]

Hey Apple....Verizon customers are still waiting for you to get out of that ATT contract. Maybe the iphone nano can be sold to other telecoms?

[cerebral_but_dull]

Hey Apple, I want to go back to Verizon too! Had to switch to AT&T and nothing has improved since Cingular days. AT&T did not fix Cingular; Apple has not improved it due to the partnership. Apple is just letting Cingular spoil their name and reputation. Verizon now.

[techman21]

Verizon is stuck with CDMA technology, unlike the rest of the world which uses GSM (except Sprint). CDMA is only used in the US and Mexico, and a few underdeveloped regions. Until they switch to GSM, they'll require vendors to make special versions of their devices to work on the Verizon network, and I think that could make vendors think twice about the extra cost for just a small portion of the global population.

[Samuelsoon]

What i really want is just a phone with an ipod. No smartphone or 3g crap that makes my bills expensive. I dont need that crap anyway

[softwarepro]

yeah no smartphone (anyways apart from wi-fi & 3G they simple phone)

just add voice-dial, speed dial and other multimedia related apps and you are all set for good phones for rest of non-smartphone people (BTW percentage of non-smartphone users are higher compare to so called smartphone users)

[Seaspray0]

Good story, Tom. Nice digging to get the links to the sources. I know you probabaly don't have any more details, but please post them when you find out. I'd be interested to know some of the specs, features, providers, network., plan costs, etc.

[D3vildog699]

I'm sorry but iphone Nano just sounds stupid.

[iroq321]

agreed. what's the point? a big selling point for the iphone was it's screen size...why nano?

[D3vildog699]

God only knows, the only place you could market it would be in china/japan they love that stuff. It would seel here just for the fact that it's an iPhone but really... ***?

[iroq321]

just another fad

[iff2mastamatt]

China? Yes, I'm sure there will be an Iphone Nano in China, just like the Chinese Nokia N95 w/ a touchscreen: BOOTLEG!!!!!!!

[smooth_operator2006]

Not long after Apple started selling the first iPhone, David Letterman did this funny bit about the "iPhone Nano." Is it just a coincidence that not long after this, the iPhone Nano rumors started?

http://www.youtube.com/watch?v=iZ1bGYMudv0

[ciscamchina]

www.ciscam-china.com
provide all kinds of chinese phones, and surveillance products,ip camera, spy camera .
sell products at wholesale price .
sell phones all over the world.
waiting for your mail.