AppleInsider is reporting that Apple’s iPhone roadmap indicates that Apple plans to introduce not one but two “distinct” models in 2007. The second to follow just months after the first.

The move is believed to be part of a broader, all-out blitz on the consumer electronics sector this holiday shopping season, in which a staggering array of gadgets from the Cupertino-based firm is expected to leave would-be rivals confused and unable to react.

The rumour site reports that the device will be significantly scaled back with a much lower cost, still marrying iPod and phone functions but dropping internet and email functionality. The device is said to be dubbed “iPhone nano.”

Pricing of the iPhone nano is expected to be less than $500 with Engadget putting a price around $249-$299.