Almost a week ago we published a report on the iPhone-mini and claimed that Apple would not consider building such a device. But as the recent rumors suggest, we might have made a big mistake in predicting Apple's decisions.

A newspaper (with close sources to Apple) recently reported that a chip manufacturing company in Taiwan would soon be developing a new low-cost touchscreen handset in coordination with Apple to which it refers to as the iPhone nano.

Little is known about the device yet but for as far as we know, it is to be made available on the Worldwide Developers Conference this June.

Courtesy: AppleInsider

Interestingly, Apple has used the same platform to release updates related to the iPhone so there is a good chance we might be seeing a new device on the upcoming Worldwide Developers Conference by Apple.

The fact that we have already witnessed a lot of fake iPhone-nano models and cases (that too in Thailand) adds more to the spice of the rumor.

If Apple does release an iPhone nano in near future, there is no doubt that new-generation smartphones such as Palm Pre and Nokia N97 will face a major threat in market shares.