Latest reports from J.P. Morgan industry analyst Kevin Chang indicate that Apple Computer, Inc. is planning to release a second iPhone, based on the iPod Nano music player form factor.

Reports indicate the iPhone Nano will be priced at $300, far below the iPhone retail price of $600 for its maximum storage space configuration, with the iPhone Nano being available for consumer purchase as soon as Q4 of 2007. He also added that Nano iPhone should have limited functionality.

According to the Chang report Apple could ship an estimated 30 to 40 million units of the iPhone Nano in FY2008.  Apple Computer issued no comment to the report.  You can read more here.