It was only yesterday when I was talking about Apple releasing a smaller version of the iPhone. And now JP Morgan, the company Kevin Chang (the one who presumably started the rumor) works for, retracts the insinuations of an iPhone Nano.

Amongst others they say that there is no immediate need of a downgraded version for the iPhone, and furthermore such an initiative would be risky. They bring as a argument the fact that an iPod nano was only released two years after the initial iPod release. Also they were talking about the idea mentioned by Chang, that a Nano version of the iPhone would replace iPods, they called this unlikely also.

“a lower-end iPhone appearing in the near-term would be unusual and highly risky.”

Besides denying rumors about the Nano iPhone, JP Morgan mentioned that a more likely development would be 3G capabilities. If we are to believe their predictions, a 3G iPhone could be released in the first quarter of 2008.

I must say, although I am somewhat skeptic about a 3G iPhone, but it sounds much more likely that we’ll see one of those in the near future than to see the Nano iPhone.