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Apple Working On 5th-Gen iPhone

Wall Street analyst has said that Apple is currently working to expand the iPhone line, and may offer larger and smaller models as soon as early 2011.According to Shaw Wu of Kaufman Bros, sources inside Apple’s overseas supply chain have hinted that Apple is working on a couple of new iPhone models.

“Our sources believe these likely represent new high-end and low-end iPhone models to complement its current iPhone 4,” Wu noted.“One possibility we are picking up is a “mini” or “nano” iPhone with a smaller candybar form factor leveraging technology in its new mini touchscreen iPod nano.”

Though new handsets are typically released in the summer, the progress being made on these new models is far enough along that Apple could introduce new handsets as soon as the first half of 2011, and even as early as the first quarter of next year. Wu said he believes the new phones could become available on U.S. carriers other than AT&T, including Verizon, T-Mobile and/or Sprint.

However, the analyst also incorrectly suggested that the new iPod nano runs iOS. While the software on the small touchscreen device looks and acts much like iOS, Apple has said the device runs its own, new operating system.

Rumors of a supposed iPhone nano were quite common years ago, but have mostly died down since. Apple currently offers three iPhone models priced at $299, $199 and $99 in the U.S. with a two-year AT&T contract.

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