Whenever a rumor about Apple starts, it goes viral. Why? Because people love to hear about Apple products, no matter how fictitious the news may be.

This time around the news came of a smaller iPhone in the works; essentially an iPod Touch with a radio in it, and boy did it cause many a fan boy to talk. But how legit WAS this news? Here is a quote straight from the New York Times regarding the matter:

“Apple is not currently developing a smaller iPhone, according to people briefed on Apple’s plans who requested anonymity because the plans are confidential. Apple’s engineers are currently focused on finishing the next version of the iPhone, which is likely to be similar in size to the current iPhone 4, said one of the people. The person said Apple was not planning to introduce a smaller iPhone any time soon… in part because a smaller device would not necessarily be much cheaper to manufacture and because it would be more difficult to operate. More important, a phone with a smaller screen would force many developers to rewrite their apps, which Apple wants to avoid”.

So there you have it, no small iPhone. Instead, when the iPhone 5 (or what ever they end up naming it) arrives, expect the usual price drop on the still evasive iPhone 4 and older 3GS and 3G models. Word.

[via Gizmodo, Source NYT]