Just like joining the two hands of a clock after each hour (65 minutes to be precise), rumors of iPhone Nano are back again. As spotted by BGR, a Chinese Web site is claiming that the Cupertino tech giant is working on a low-cost iPhone, dubbed iPhone Nano, citing unnamed sources within industrial supply chain.

According to China Times, Apple will release iPhone Nano to compete with entry-level smartphones. It quotes that SIM-free version of iPhone 3GS costing $375 is too pricey for entry-level smartphone users. If this report is to be believed, then Apple may launch a low-end variant of its iPhone this year.

These rumors are similar to the recent buzz on smaller, cheaper 'iPad Mini' was generating since the release of iPad 2. Like iPhone Nano, iPad Mini is a hot debate topic on the internet. Last month, DigiTimes claimed that supply chain have started delivering samples of iPad Mini for verifications. The reported screen size of the alleged tablet is 7.85-inch. And earlier this month, NetEase claimed that Apple has placed orders for iPad Mini.

Well, we don't know about iPad Mini, but launch of iPhone Nano could be the first step to doom for the world's most valuable company. Apple is known for its prestigious brand image and revolutionary products. Looking back, after climbing the ladder, is not in Apples blood.

InformationWeek author Eric Zeman describes in a post how iPhone Nano would be a clear mistake for Apple. He also claimed that iPhone Nano will have an adverse effect on sales of iPod Nano.

Every iPhone, no matter whether it's iPhone 3G or 4S, has a 3.5-inch display, which is an entry level screen size for rival smartphone manufacturers. WP7.5 and Android phones have variable screen sizes ranging from 3.7- to 4.7-inch. Every new flagship device getting released by Android smartphone manufacturers have a screen size larger than 4 inches. At such time, Apple needs to increase the size, while the "Nano" tag clearly indicates a smaller sized product.

Also, the iPhone 3GS is being offered by AT&T free of cost on 2-year contract terms. Even if iPhone Nano also sells for free on a network carrier as iPhone 3GS, there is no advantage going for the downgraded product.

Rumors about iPhone Nano have been buzzing in the blogosphere since the times of iPhone 3GS. But we do not think that Apple is so foolish to release a low-end device. Apple is the most high-rated company with largest number of followers and owning an Apple product now-a-days is a symbol of one's affluence and prosperity. Releasing a down-to-earth, low-cost iPhone would require cutting corners. It means releasing an iPhone without Retina display, snappy processor, powerful camera or good battery. But without these features, iPhone would be a terrible, inferior product. And launching an inferior product is not Apple's style.

Hence, to conclude, iPhone Nano is not happening. No way. It's high time the iPhone Nano rumor is put to rest.

(reported by Johnny Wills, edited by Dave Clark)