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Steve Job must be well prepared for the upcoming Macworld Keynote and he may very well mention the iPhone. The success it has seen and the platform it has provided for the developers to market their apps, very successfully. But I seriously doubt him announcing anything about an iPhone nano. Why? Because I think there are quite a few reasons that just dim out any possibility of Apple making a nano iPhone:

• It would look ugly
• A smaller screen, which would make it virtually impossible to type. I find typing quite difficult on the present one.
• The gnawing issue of a limited battery life, will gnaw users more.
• What about the apps? A smaller screen would mean a different resolution and may very well have many a apps appear and feel different.

And given Apple’s strategy to introduce something better and different puts a big NO on the possibility of the nano model. Apart from that there is a lot it can do to sell the present iPhone more successfully, reduce its price (it can be one important announcement Apple may make next month).