We have already covered some rumors about iPhone Nano from big sources like, Wall Street Journal, CultofMac, According to them Apple preparing some mini type of  iPhone and will launch it in this Summer 2011.

But according to NYTimes, Apple is working on a cheaper model of iPhone and integrating voice commands feature instead of launching iPhone Nano.

Apple has been exploring ways to broaden the appeal of the iPhone by making the popular device less expensive and allowing users to control it with voice commands.

But contrary to published reports, Apple is not currently developing a smaller iPhone, according to people briefed on Apple’s plans who requested anonymity because the plans are confidential.

The report also contains that Apple going to make its MobileMe service for free to compete with competing services from Google and Microsoft.

The current version of MobileMe, which costs $100 a year, has failed to catch on with consumers. Rivals like Google and others offer similar services free.

The new version of MobileMe is expected to be free and would allow users to synch their files without using a cable.