Ever since Apple announced the original iPhone, we believed that it would create an iPhone nano at some point. It would be smaller, less expensive but unlike what we originally thought, it would most likely retain most of the same functionalities (applications compatibility).

The current rumor is based on a case design from XSKN that found its way to the web. This is not much to speculate on, but the idea of seeing Apple go after a mass-market is interesting, but not unexpected.

What’s your take on this? Will this be an iPhone nano or a small iPod touch or both? Or do you think that this is just vapor? More images here

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Image via Wikipedia

Apple’s App store is seeing more than 2 million applications downloads everyday. Even though people thought that the initial swell in applications downloads would eventually top off and slow down, the App Store is actually seeing more traffic flow than before.

It was not long ago that Apple advertised claims of 300 million downloads since the App Store opened. Just back on October 22nd Apple announced the 200 million download mark. At this rate, who knows when the daily downloads will start to peak? As more and more users download premium applications, Apple will see its residual iPhone income increase.

“It’s unbelievable,” says Piper Jaffray’s Gene Munster. “It’s a differentiator. We think in ‘09, it’s going to be a $1 billion market place and Apple will probably take about 30 percent of that. There’s virtually no operating expense for them. They just approve the apps.” Apple now has the most robust andintegrated software and media platform in the mobile world with over 10,000 applications to choose from.

[Via CNBC]