Every year we see it: some new gizmo becomes the must-have Christmas present. For Christmas 2008 the rumored “next big thing” isn’t the Nintendo Wii — it is a new Apple iPhone, shrunken down to a ridiculously small size.

The iPhone Nano will have a 2.75-inch screen (compared to the iPhone’s 3.5-inch), MultiTouch and come in 4 and 8GB capacities.

The recently launched Apple iPhone 3G comes in a slightly different enclosure compared to the original iPhone – it is now made of plastic and is slightly thicker – but sports the same 3.5” touch-screen with 480×320 resolution, includes support for quad-band GSM, EDGE, UMTS, HSDPA, 802.11b/g Wi-Fi and Bluetooth 2.0 EDR wireless technologies. The iPhone 3G also features a 2 megapixel (2MP) camera, audio and video playback capabilities as well as assisted GPS function. Depending on the model, the iPhone 3G comes with 8GB or 16GB of memory.

Whether this comes to pass for the 2008 holiday season remains to be seen. Apple is mum on the whole deal but summer media and internet rumor mills have been buzzing. So an announcement is expected at just about any time.

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