cheaper smaller iphone nano

According to Bloomberg, Apple is hoping to stem Android's rise with a new model of the iPhone that is "cheaper and smaller" than the iPhone 4. Think of it as the "iPhone Nano."
Citing "people who have been briefed on the plans," Bloomberg writes the new version of the smartphone would sell for around $200 with a two-year contract and adds, "Apple also is developing technology that makes it easier to use the iPhone on multiple wireless networks."