AppleInsider is reporting that Apple is designing a second iPHone for release later this year. While it wouldn't be as powerful as the current iPhone, it will cost less and be similar in size to the iPod Nano.
CNET's Tom Krazit believes it is far more likely that an updated iPhone would incorporate much requested features such as 3G before coming out with a less expensive version, especially since the iPhone's acceptance in Europe, where high speed cell phones are expected, would be hurt without 3G support.
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