MacWorld starts on January 5th, 2009 and Apple typically uses the big stage to announce new products. Today we officially start the rumor mill, with iDealsChina claiming to have information regarding a so-called iPhone nano. The case manufacturer has had a spotty track record, but did provide images of a Griffn case mold for the iPhone 3G before it was announced. Information regarding the iPhone nano comes with a rendering of a skin case designed for yet unannounced iPhone.

Since the release of the first generation iPhone, rumors regarding a smaller, inexpensive iPhone nano have persisted. As MacRumors notes, any changes to the resolution of the screen would cause major incompatibility issues with the current crop of applications. The iPod nano is Apple's best selling iPod, so it would certainly make sense for the company to create a more affordable and diminutive iPhone.