Rumors circulating way back in 2011 said Apple was planning an iPhone nano, its first budget iOS device. The handset didn’t come out for years and it used a different name, but new evidence proves the early leaks were 100% accurate.

There’s no doubt that the iPhone is one of the most popular pieces of technology ever invented. The rush of people lining up for hours just to buy one usually causes competing carriers to trip all over themselves for the opportunity to sell the iPhone, except recently the list of carriers clamoring for the iPhone has slowly dwindled to just a few prospects.

Despite its successes, Apple is missing out on the chance to sell the iPhone to as many as 2.8 billion new smartphone customers, and according to some experts, the only thing that’s stopping them is Apple’s own rules.

Speculation that claims Apple is set to launch two new iPhones this September doesn’t look like it’s going to die down anytime soon. The latest report, citing information from a previously reliable source, claims that in addition to an all-new iPhone 5 this September, there will also be a low-end device, possibly based on the iPod touch.

Following its report yesterday that promises a thinner, lighter iPhone 5 by the end of this year, The Wall Street Journal now offers us some information on Apple’s 2012 iPhone, which it says will boast a whole “new way of charging.”

Like two sharks fighting over the carcass of a dying whale, Apple and Android want a piece of Nokia’s huge (but shrinking) market share. To do so, some suggest the tech giant needs to unveil an inexpensive handset…. the iPhone Nano.

Apple’s fetish to miniaturize can never be slaked: a new report suggests that a little over t one year after introducing the micro SIM with the original iPad, Apple’s looking to make the SIM chip in your next iPhone or iPad even smaller, and it could even pave the way for that iPhone Nano we’ve heard rumors about. Nobody sneeze.

I feel pretty bad about yesterday’s post about the iPad 3 being the one to make a song and dance about. I’m sure the iPad 3 will be great when it comes out, but for right now, the iPad 2 is a great upgrade. This is not a ho-hum update, as our anonymous Apple staffer suggested.

It’s a rockstar from Mars update. It runs on tigerblood.

The slimmed-down weight and bulk make a big difference. It’s much easier to hold and handle. It’s pretty astonishing that Apple managed to cram in so more, yet made the case so incredibly thin. That is rockstar engineering.

The cameras should have been in there all along, of course, but the addition now makes the iPad much closer to feature-complete.

But the real magic of the device is the integration of hardware and software. Look at the piano in Garageband. You tickle the virtual keys softly and it plays softly. But hammer on them and you sound like Little Richard. The iPad 2’s screen is touch-sensitive, thanks to the built-in accelerometer, which tells the iPad how hard you are touching the screen. Watch the video of it in action here. It really is pretty astonishing!

Without that integration of hardware and software, other tablets are just fancy digital picture frames, as Wired’s Brian Chen noted on Twitter.

The iPad 2 is pure Apple: it proves that Apple is its own most ruthless competitor. Overnight, 15 million first-generation iPads were rendered obsolete.

Apple’s competitors are dead in the water. Steve Jobs is a master of hyperbole, but this time he’s right. There’s no doubt about it: 2011 is the year of the iPad 2.

Both Bloomberg and the Wall Street Journal reported that a smaller iPhone nano was in development, but now the New York Times says a shrunken iPhone is NOT on the cards.

Apple is developing a budget iPhone, the NYT says, but the device will not be any smaller than current models. Instead, it will scrimp on internal components, like memory, as we exclusively reported on Monday (More Detail On Apple’s iPhone Nano).

Keeping the iPhone nano’s screen size the same as current models makes perfect sense. Developers won’t have to code apps for different screen sizes, like they do on other platforms.

The Times did corroborate our report earlier this week, also reported in the WSJ, that Apple is planning a major overhaul of MobileMe. MobileMe will put a lot more media and files in the cloud, allowing users to stream and sync to all their devices without using cables.

The budget iPhone will make more use of voice commands, the NYT says.

If Apple shrinks the iPhone to nano size with a screen that runs edge-to-edge and no Home button, how will users quit apps and return to the Home screen?

Developer Max Rudberg suggests that users could squeeze the sides of their iPhone to close apps. He writes:

This could be a real wow effect. Seeing how the phone reacts to your grip and then having the app vanish in the palm of your hand.

To avoid ‘squeeze to go Home’ from happening by accident, a visual cue could show that pressure is being applied. In this concept, the app begins to shrink to reflect the pressure that is being applied. When the pressure goes over a defined threshold, the user is returned to the Home screen.

The strength of a users grip will of course vary. Therefore, a setting for how much pressure that’s needed before an app is exited could be a good idea.”

Rudberg, who runs Max Themes and created popular jailbreak themes Glasklart HD and Serious SBSettings HD, suggests the iPhone nano have a pressure-sensitive body. He made a cool video showing how it would work:

https://www.youtube.com/watch?v=e7uk_sxYW98

[via iPhone Download Blog and MacStories]

This is probably the best iPhone nano mockup so far from our friend Tyler Hojberg, who writes:

Hey, just thought I’d share my concept idea of the “iPhone nano.” Creating a smaller chunkier screen allows more room for a full sized keyboard and contrary to popular belief, I decided to keep the home button. I don’t believe Apple is ready to do away with the iconic home button just yet, as I believe it’s one of the distinguishing form factors of the iPhone. Notice the change in antenna at the bottom which I believe would be blocked because of the way a smaller iPhone is held, leaving only one at the top. It’s conceptual, but not too far-fetched.

What do you guys think? Would it work?