Since the speculation on Apple creating a smaller phone , an iPhone-Nano or some such, appears baseless and random, let's just make something up.
Here's what we do know: Jobs hates keypads so he will put a regular phone keypad on an iPhone at about the same time he puts a floppy disk-drive back in the Mac. Secondly, Apple lacks voice-recognition-dialing software, otherwise voice commands would be in today's iPhone, which badly needs it.
Turning a failure into an asset as no one else can, Jobs will announce the iPhone-Shuffle, the World's First Social Networking Cellular Device: It has only one button as the interface. Load your contacts, then when you press once it randomly dials one of them. It's social networking at its best. For advanced users, hold the button for three seconds and iPhone-Shuffle randomly hooks up two for a conference call. I can see the video:
"Old fashioned networking is a thing of the past," Jobs said. "The iPhone Shuffle randomly hooks you up with whichever of your BFFs is available. Random hook-ups reflect Gen XY's modern values. The interface's simplicity is a thing of beauty.
"We're bringing the social networking of sites like My Space and Facebook to your pocket (not to mention cutting our production costs)."
Let's see reality top that.