If you have an iPhone that hasn’t been sprung from jail, you have an AT&T contract as they have the exclusive rights to provide service.  It looks like they are going to have to share the bed with a new party, Verizon.  A rumoured smaller iPhone could possibly have Verizon as a service provider.  There is also a rumoured Kindle-like device that Apple might have in development which will be smaller overall, but with a larger touch screen.  Ars Technica has a bit more on Apple’s possible upcoming release here.

“Apple is preparing to launch not one, but two new devices with Verizon, according to yet another new rumor. Two “people familiar with the matter” speaking to BusinessWeek have leaked details about an alleged “iPhone lite” and a tablet-like device, one of which may launch as early as this summer (we assume to coincide with the release of iPhone OS 3.0).

These claims seem to support evidence of multiple new devices discovered in the latest iPhone OS 3.0 beta last month. At that time, we dug up product identifiers for yet-to- be-released iPod touch and iPhone models, plus two mystery products referred to as “iProd” and “iFPGA” respectively. iFPGA didn’t conform to Apple’s standard numbering scheme for the iPhone and iPod touch, and iProd had a product number of 0,1, indicating that it could be a prototype under development.”

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