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Rumor: Case manufacturer drawings show smaller iPhone 'nano'?

Our sister site Engadget notes that iDealsChina found this rendering of a silicone case for a new iPhone-like device with a smaller form factor.

iDealsChina says the case is "in production," and has many 3D images of a variety of angles. The device may be unveiled during Macworld Expo next month. The site also claims the "iPhone nano" will have three "sensors," a camera, a "mirror screen" and no 3G. The device will allegedly start production on December 20th at a rate of 60,000 to 80,000 units a day.

This falls in line with unsourced rumors of a wireless product slated for announcement at Macworld. It could wind up being the magic $99 Walmart iPhone that we've heard so much about.

The look of the new iPod nanos was leaked (famously by Kevin Rose) earlier this year as a result of a supplier showing off renderings of new cases for the device. According to iDealsChina, "...once one company starts making a mold their information is passed onto other mold companies or accessory companies through a China underground network."