According to a report by OTR Global, via AppleInsider, sources within the Taiwanese handset supply chain say Apple has contracted to produce a UMTS/CDMA hybrid iPhone. This will allow Apple to sell a single “global handset” worldwide and this would include Verizon Wireless in the US

The new worldwide iPhone will be compatible with CDMA2000 networks, while allowing for support of UMTS 3G networks using a new hybrid chip.

In a surprising twist, the new phone is rumored to have a smaller 2.8″ screen, much smaller than the current 3.5″ screen currently found on the iPhone.

This news comes on the day when Verizon launched the Droid, the phone intended to compete directly with Apple’s iPhone 3GS.

For complete coverage of the Motorola Droid, please visit our sister site at everythingandroid.org.

[via AppleInsider]