According to news sources in China, a low-cost “iPhone Nano” is in the pipeline this year. Apple is looking to expand its low-end smart phone market. Apple's iphone 3Gs is too pricey to compete with new entry level smart phones.

The imminent lauch of an entry-level “iPhone Nano” is one that we have seen regularly since Apple launched its first iPhone in 2007.

The company is planning to launch a new low-end model later this year and at the same time or around sixth-generation iphone hits the market. More likely is the possibility that Apple will reorganize a current iPhone model in an effort to cut costs.