The "Phone nano" was a no-show at Macworld last week despite persistent reports, but that hasn't silenced the rumor mill. On the contrary: DigiTimes now quotes a report by the Economic Daily News that says the device will launch in June "at the earliest."
That report centers around Taiwanese foundries TSMC and UMC, which will allegedly manufacture chips for the device. Said orders are supposed to arrive in March, in time for the June launch. DigiTimes also calls the iPhone nano "low-cost" and "entry-level," and that's about all of the detail it goes into.
Rumors about the iPhone nano got a lot of traction in mid-December, when a silicone case manufacturer "leaked" images of a skin-tight casing for the device. The concept of a lower-cost iPhone with fewer capabilities might make sense, although in practice, Apple may not be willing to compromise on the user-interface front and sacrifice things like compatibility with software on the App Store.