The next-generation iPhone may be joined by a smaller, cheaper version of the increasingly popular device if a new report by Bloomberg is to be believed. It is very likely that Apple does indeed have a smaller iPhone almost ready for production, but do not be surprised if Apple does
According to UBS Investment Research analyst Maynard Um, Apple is planning to expand their iPhone 3G line to include colors. He cites industry checks which point to Apple making the change in time for the 2008 holiday season, which corresponds to rumors of a Product Red iPhone 3G. He also claims that Apple is working on a whole new iPhone, which will be released in the first half of the following year.