Although it did not appear at MacWorld some days ago, it seems that Apple's plans to introduce a smaller version of the popular iPhone dubbed "iPhone Nano" are on track, the Chinese Economic Daily News (EDN) reported on Tuesday.

According to the paper, Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Corporation (UMC) will likely land chip orders for Apple's entry-level iPhone nano, Digitimes.com. reported on Tuesday. The paper expects the the chip orders to come in March and puts the launch of the iPhone nano sometime after June.

Although Apple has never confirmed its plans to release a lower-cost iPhone, the concept could make sense for the company.

Last month, iDealsChina had published "leaked" images of a casing for the upcoming device, essentialy starting up the rumour mill. The web site also made a step furhter by releasing some basic specifications for the iPhone Nano, which would include a camera and it would not offer 3G connectivity.