Apple Working with Verizon on two New iPhone-like devices?

Business Week is reporting that two sources "familiar with the matter” have told them that Apple and Verizon are working on two new iPhone-like devices: one device is a smaller, less expensive version of the current iPhone and the other device termed as a media pad, which would let users listen to music, view photos, and watch high-definition videos and also allows users to make VoIP calls via Wi-Fi.

According to Business Week these new devices could come out as early as this year.

Business Week is reporting that Apple and Verizon are working on two iPhone-like devices:

One device is a smaller, less expensive calling device described by a person who has seen it as an "iPhone lite." The other is a media pad that would let users listen to music, view photos, and watch high-definition videos, the person says. It would place calls over a Wi-Fi connection. One of these devices may be introduced as early as this summer, one person says.

The description of the second device definitely sounds interesting.

However, in our opinion it is unlikely that these devices will be available to Verizon users this year as Verizon’s CEO had commented just two weeks ago that Apple would be more likely to partner with Verizon in 2010 when they start rolling out fourth-generation Long Term Evolution (LTE) networks.

But we can't completely rule out the rumor as iPhone firmware 3.0 had revealed code references to two new iPhone models, an iPod Touch and an unnamed device.

We have also heard a rumor that Apple is working on a high-end iPhone with 32 GB of flash memory and a low-end 3G version which will be released in June and Commercial Times had also claimed that Apple might be working on three new iPhone models.

If indeed the rumor of the two iPhone-like devices is true, Apple could very well offer them through AT&T.

As always, let us know what you think in the comments section below.

[via Business Week]