More iPhone Nano: Now In China?

The plot thickens! CNET’s Tom Krazit reports that two Taiwanese chip manufacturers have gotten contracts to produce chipsets for a “low-cost entry level” iPhone–the iPhone Nano, in other words.

The chip orders are supposed to come through in March 2009, with the phone going on sale no earlier than June. But where will it be sold? Krazit suggests that the iPhone Nano may not be intended for Western markets at all. It could be Apple’s bridgehead into the vast Chinese domestic market, which is very price-sensitive and has already been primed by cut-rate iPhone knockoffs. What would a Chinese App Store look like? We don’t even want to think about it!

Our two cents: the regular 3G is already cheap enough for the US market, more or less. Many potential customers are balking at the price of AT&T 2-year service contracts, not the $199 3G.

[from CNET News]