Reports have already emerged a few days ago from a number of reputable news outlets about the possibility that Apple will launch a cheaper and potentially smaller version of the Apple iPhone, one which we shall call the iPhone 5 Mini.
CultofMac reported earlier this week that the device might be a streaming model only one that has a limited amount of memory which will be enough to allow it to buffer media streamed from the cloud and install applications.
CoM's source (opens in new tab) says that the iPhone 5 Mini will get all of its content from the updated, radically different Apple MobileMe service that the tech giant plans to launch at the same time as the new handset.
Some have suggested that the device may run a virtual machine iOS which would make it near impossible for hackers to jailbreak the handset although whether the mobile phone carriers would support a device that demands so much data access, remains to be seen.
Ultimately, it will all be down to pricing and Apple will have to cut corners in order to bring the price point to around $200 or so. From this perspective, the prospects of an iPod Touch with very basic telephony features grafted on are real.