Apple is to launch a nano version of its iPhone in time for Christmas, according to a report.
It is expected to cost £150 on an O2 pay-as-you-go tariff and outstrip sales of the original, Simon Fluendy states in the Daily Mail.
An industry sours told the news provider the iPhone 3G is too expensive to be a "realistic proposition" in the pay-as-you-go market, adding that the nano version "will be a big one".
"A cut down version, with the candy bar shape of iPod nano music players, would be a huge hit as a Christmas gift," the source said.
One expert told the publication that the nano version would have a touch wheel on the back and display on the front, so numbers would be dialled from behind.
According to a Which? survey, mobile phones are the most life-changing gadget.
Nearly a quarter of those surveyed said gadgets such as the iPhone have changed their life.
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