Remember those iPhone Nano rumors that cropped up this week courtesy of Bloomberg? That rumor has just got some legs after a story today from the Wall St. Journal. They claim a source saw the smaller iPhone prototype several months ago and it’s about half the size of the iPhone 4. The smaller iPhone, we’re calling it the iPhone nano, is codenamed N97. It would be available to carriers at half the price the current iPhone 4.
Apple is also said to be considering a major overhaul of it’s MobileMe service, possibly transitioning to a free service. Right now, Mobile Me requires an annual subscription of between $99 to $149.
Steve Jobs is also said to be heavily involved in both products, despite being on medical leave.
Both the newer iPhone and revamped MobileMe are intended for release this summer.