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Rumor: Apple Could be Developing iPhone Lite, “Media Pad” for Summer Release

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It came from the very depths of Rumorville, but it’s interesting stuff.
Per BusinessWeek, two anonymous sources have stated that Apple and Verizon may release two new Verizon-exclusive iPhone-like products as early as this summer.
The rumors go hand-in-hand with recent talk that the iPhone is coming to Verizon, and that Apple has new devices up its sleeve for the summer.
The first device has been described as an iPhone nano of sorts and may function as a smaller, less expensive iPhone handset. The “iPhone Lite”, as it’s been coined, is smaller and thinner than the existing iPhone and will come cheaper because it “relies on a so-called system on a chip, which incorporates many types of chips and drives down the cost of silicon in such devices.”
The other device is a “media pad” which features the same functionality as an iPod Touch – music, games, photos – but with HD video and calling ability via a Wi-Fi connection.
The sources told Business Week that the device will be smaller than Amazon’s Kindle 2 ebook reader, but feature a larger touchscreen, paving the way for more speculation about Apple entering the eBook market.
“The media pad category might go to Verizon,” a witness told Business Week. “We are talking about a device where people will say, ‘Damn, why didn’t we do this?’ Apple is probably going to define the damn category.”