Yesterday, Numerous analysts and iPhone related websites predicted that Apple will announce a scaled down (in size and capability) version of the iPhone before the end of the year. Speculation pointed to a device approximately the size of iPod Nano that would retail for half the price of the current iPhone.
iPhonePOV has learned that this rumor was nothing more than wild conjecture based on recent Apple patent applications, which are notoriously ambiguous and misleading. Reliable analysts, like JP Morgan, are also distancing themselves from this rumor, which was simply not believable (typing anything on a Nano would be next to impossible) and did not fit into Apple's historical release patterns for hardware upgrades.
Undoubtedly, some form of smaller iPhone is already a twinkle in Apple's eye, but the public will not see it in the next five months.