There are rumors, that iPhone Nano (smaller iPhone)is going to be a new version of the iPhone 4 which will be running on an Android software. It can be said that, Apple might have got distracted with the showstopping smartphones at Mobile World Congress. Apple is having many challenges to meet from the competition so it might introduce a cheaper alternative before the customers for raising the business volumes. It is being expected that the new Nano iPhone will deliberately capture the market growth of Google.

For whom?
The cell phone will specifically cater to the needs of the middle class customers who want to own an iPhone. The vision of Apple is to dis-fragment the hold of Nokia and other players in the phone market. The iPhone will definitely target customers from China and India.
Price and availability
There are some rumors that the phone will be available at $200 without a contract.
What’s great?
This will be a mini smartphone version of Apple iPhone. There is another rumor that states that Apple would revamp its iPhone software (in Nano iPhone) for allowing the customers to choose a network and configure their device on their own. If compared to iPhone this will be a much cheaper phone which can make its way to the smartphone markets of India and China. There are some other smartphones which will use more advance parts in its next iPhone. IPhone Nano will have a dual-mode chipset and a universal SIM for changing the carriers on the fly. In this way Apple has responded to its critics who were saying that $600 iPhone is too expensive.
Smaller and Cheaper smartphone
The iPhone Nano has been priced at $200 without a two years service contract. Some sources confirm that Apple is planning to roll out its device by the mid year. Only very few Apple employees have the knowledge about the Nano iPhone project. The smartphone will use reasonable processor and components in its smartphone. More enhanced forms of software's will be used in next editions.
Dual-Mode Phone
This is quite unimaginable that this $200 smartphone would be a dual-mode phone. So this device would be compatible with the global system for mobile communications, used by AT&T and overseas carriers and code division multiple access carriers used by Verizon Wireless.
Now it is going to be a much better spec, a universal SIM will be there in the iPhone Nano for selecting the GSM networks without switching the SIM cards that associate a phone with the network. Another cost saved for the iPhone customer.
This unique feature will provide Apple an extra edge over mobile carriers in generating business. The device would be sold without carrier subsidy. So buyers can get away with unwanted terms like termination fees (Which the carriers demand for reducing the cost of the phone).
What’s not so great?
It is not that expensive phone, so Apple has placed some cuts in the features of this smartphone. It is said, that the Apple has synchronized the memory storage capacity of iPhone Nano to an extent . The iPhone Nano will have no memory for on board storage and instead of this there will be a cloud storage device. The device will be having memory for internet surfing only.
HTC Droid Incredible
Droid Incredible is an Android powered smartphone which has been designed by HTC for Verizon Wireless. As the name suggests, it is an incredible smartphone which allows detailed focus (with 8-megapixel resolution), agile connection and instant sharing. The Android OS with HTC Sense allows easy access to endless applications and games available at the Android Market. Droid is a bit longer and thicker than iPhone but it almost shares the same features. It is having a four touch-sensitive keys which functions like an optional joystick.
BlackBerry Style
Please don't confuse this BlackBerry design with a Raspberry. Apart from having elegant looks it is amazingly convenient to hold. BlackBerry style runs over OS 6.0 which support 5 Mega Pixel powerful camera and smooth QWERTY Keypad. Its high performance specs include: Touch Sensitive Optical Trackpad, Blackberry Maps, document editor, a wide storage capacity, 8 GB card which can be expanded up to 16GB.
T-Mobile myTouch 3G Slide
The myTouch 3G is a beautifully crafted slim and sleek smartphone design. MyTouch packs in 600 MHz ARM processor, 512MB of RAM, 8GB microSD memory card, Android 2.1 OS, which will be soon upgraded to Android 2.2. It's additional specs include: 3.4 inch touchscreen display (with 320 x 480 resolution), trackpad, 5 megapixel camera, and HTC Sense UI.
LG Ally
LG Ally is called as the most affordable Android smartphone. An Android 2.1 running on 600MHz processor, 3.2" screen, 3.2MP camera, a full hardware keyboard, 4GB microSD memory card all will became a part of this smartphone. What the Android fans will like is that, LG has not added its own user interface on the top of the operating system.
Nokia E73 Model
E73 Mode is a Bar shaped slim, sleek, messaging-friendly phone from T-Mobile. It features a comfortable QWERTY keyboard for texting and viewing messages. This is also a Symbian-based phone which lets you to switch between work or home screen. It also packs the popular Nokia Ovi Maps application for navigation. E73 comprises of: QWERTY keyboard, 5 megapixel camera, 3G connectivity, video call support , WLAN, Bluetooth, GPS, 16GB microSD support, UMA-support for WLAN calling, and VPN for intranet.