iPod Nano?

According to a new entry to Kevin Rose's blog, Apple is set to debut a smaller sibling to the iPod Mini along with the iTunes-compatible Motorola ROKR. The iPod Nano is expected to sport 2 GB of solid-state memory & color screen to display photos, but will be much smaller and thinner than the iPod mini.

Our source claims that the Nano will come with a necklace holder like the shuffle.