When there’s smoke, there’s fire. We at iPhone-Codes.com are in the belief that Apple is cooking up an iPhone Nano that will be released next year. Although Steve Job’s camp has not issued any statement about the rumor, talks are ripe that a smaller iPhone will soon hit the market.

But the question now is whether or not iPhone users are ready for a smaller iPhone. Or is an iPhone Nano a bad idea?

Of course, an iPhone Nano would mean a smaller screen, a smaller virtual keyboard, a smaller battery which could mean a shorter battery life, a smaller text, a smaller touch-screen buttons, a smaller everything.

Now, if you are hobbit like Frodo (in terms of hand size) you wouldn’t have any problem navigating the smaller iPhone using your tiny fingers. But if you are an average American that has huge fingers, you will surely fret at pressing two buttons at the same time because the buttons are way too small.

We are crossing our fingers, hoping that Apple will address various concerns before releasing the iPhone Nano. Oh well, Asia already has its own version of the iPhone Nano (or was it iFun Nano?)