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iPhone nano mockups start coming in

We’re particularly interested in the “screen goes to all of the edges” and “voice navigation” part of the WSJ report over the weekend.

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According to the well-informed Wall Street Journal Apple is currently working on an iPhone that is half the size of the iPhone 4 and a major MobileMe overhaul for release this summer. The report is following up on Bloomberg’s report about a smaller iPhone but adds some new details such as the device’s “N97″ codename and size.

The WSJ also claims the new, smaller iPhone will be available “at about half the price of Apple’s main line of iPhones.” The smaller iPhone is said to be sold alongside Apple’s main line of phones so maybe this summer’s lineup will be the iPhone 5 at $199/$299, iPhone 4 at $99 and iPhone nano at $49.

Update: The WSJ has updated their report to include some new, specific information about the new, smaller iPhone. According to the report’s sources this new iPhone will be lighter and will have an “edge-to-edge” screen (no home button?!), and wait for it… have voice-based navigation. They also claim the new MobileMe revamp was due for release last year and will allow users to stream their iTunes libraries to their phones so they won’t need to actually sync through the iTunes desktop application. The report also says Apple is working on an update to their main iPhone (iPhone 4) and Steve Jobs declined to comment via email.

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