Citing the Chinese-language Economic Daily News (EDN), the International Business Times reports that Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Corporation (UMC) are likely “to land chip orders for Apple's low-cost, entry-level iPhone nano.”

Neither of the two publications provide any evidence whatsoever that the iPhone nano is indeed a possibility next year. However, the Chinese paper does go on to claim that chip orders may come as early as March 2009 (according to the same source), enabling the Cupertino-headquartered company to launch iPhone nano months later (in June).

Providing increased credibility to the rumor, American Technology Research analyst Brian Marshall is cited as saying that the iPhone nano is happening, and that it will not initially be launched in the United States. Noting that the iPhone nano is not yet in the testing labs at AT&T, Marshall believes that the launch is likely being arranged with a non-US carrier. Obviously, Marshall has gone on to speculate that China could be an ideal market for iPhone nano's release.

“We do expect an iPhone nano launch early this year, and our analysis suggests this could add an incremental ~$3.4bil in pro forma revenue [to 2009],” Marshall told clients on Monday. “Obviously, the best-case scenario here would be a China launch (~600mil+ wireless subscribers total in the country), but we have no definitive knowledge of this, and are working on identifying the local of launch and other pertinent details,” he added.

Even before Phil Schiller's Macworld 2009 keynote, some believed Apple was prepping to unveil a stripped down version of the revolutionary iPhone at its last appearance at the popular trade show. Adding fuel to an age-old rumor, case manufacturers had been dropping hints that the device was real, listing the availability of protective cases for an “iPhone nano,” some even posting images of the products. Knock-offs were also spotted and reported of, although these never provided any clues about Apple's real activity.