Though we receive many rumours about Apple products, this rumour comes from iDeals China that previously gave us an accurate description of the iPhone 3G almost two months before its announcement. Using tip-offs given by Chinese manufacturers, iDeals China believes that from December 20 of this year, manufacturing of approximately 60 000 "Nano iPhones" per day will begin.
Apparently the new phone will be the same height as the nano iPod but wider and thicker. Surpringly, they do not believe it will have a 3G chipset but will include three sensors, a mirror screen and a camera. The lack of 3G could be explained by the reduced size of the phone not allowing for a high capacity battery. As previously benchmarked by iPhone Hacks, the 3G chipset reduces battery life considerably.
It is believed an announcement of this phone will come from Steve Jobs in January to coincide with MacWorld. Shortly afterwards it would be available in retailers such as Walmart and sold at a competitive price.
The site claims that images will be available within the next week. For now, there is a mockup: