this doesn't really sound very impressive to me - considering the iPhone already has the storage capacity of a nano as it is, I can only imagine what they are gonna have to cut in order to cut the price in half - it probably won't be an even remotely "smart" phone, but rather just a very pretty music phone. I personally hope that apple starts moving its iPhone technology to its iPods - a wifi, widescreen iPod with some PDA capabilities would sell like wildfire. Plus, without all the phone hardware, they should probably have enough room to fit a HDD in there so that you can actually store more than a few movies on the damn thing.