Sorry, Apple Fans: No Plans for 'iPhone Nano,' But...

Ignore the reports you’ve been hearing: There are currently no plans to make a smaller version of the iPhone, insiders tell the New York Times. Apple is working on a new version, likely for release this summer—but it’ll be about the same size as the iPhone 4. As for what Apple is possibly cooking up next? A cheaper version that's capable of understanding voice commands.

Why no tinier iPhone? A smaller phone would not necessarily be any cheaper to manufacture, and could be harder to use, says one insider. Plus, it would require some developers to redesign their apps to fit the smaller screen. The company is working on a new, free version of the relatively unpopular MobileMe, which should sync media “across all your Apple devices,” said another person with knowledge of Apple’s plans. (Plus: a worker spills Apple-store secrets; click to read.)