How Apple Can Make An iPhone Nano

Here's how Apple can create an iPhone nano without going to a smaller screen than the 3.5" now used on the iPhone.

• The whole face of the nano will be the screen except for the top where the user can listen to phone calls.  The speak can be moved further up to where the grooves are allowing apple to save almost 1/2" from the top of the current iPhone.
• Use the 3.5" and remove the home button or move it to another location on the nano.  If Apple wants to keep the home button, the ideal location is the side area on the right side of the nano.
• By moving the home button, the nano can shave off about 1/2" from the bottom of the iPhone.
• By saving about 1/2" at the top and at the bottom, Apple can create a nano that is 3.5" or so in length.  
• A frontal webcam is possible and I remembered a patent by Apple where buried in the screen is a reflective webcam.
• Apple can create a longer length nano but also make it more narrow and still maintain decent resolution.
• With Apple's advanced battery technology like what we need in the Macbooks and more efficiency gained from chips and the iPhone OS, we can still expect to see usage increased or at minimum, maintain industry level in battery life.
• There maybe some compromises in features for the nano compared to the iPhone given its smaller body.  But Apple innovation should be able to bring certain iPhone features to the nano in subsequent upgrades.  For instance, Apple might not be able to add a webcam to a first generation iPhone nano but might be able to make that feature in the second generation nano.