I think Apple has been listening to us and I believe there is something to the old and replete iPhone Nano rumors many months ago. The Daily Mail of the UK is reporting this rumor with the warning, “This will be a big one,” from an industry source. The Apple iPhone has been a big hit but Apple has been neglecting the pay-as-you-go customers. A cheaper iPhone with “a cut down version, with the candy bar shape of iPod nano music players, would be a huge hit as a Christmas gift.” Contract free, retailing for £150 ($295), it could be the hottest tech gift this Christmas, especially with the touchscreen and its clickwheel complement located at the back of the phone (see related posts on the iPhone clickwheel and more iPhone Nano rumor from long ago).

[via techradar]