Bloomberg is citing -- youguessedit -- "people who have been briefed on the plans" as saying that Apple is hard at work on taking the iPhone downmarket with a new model that's roughly one-third smaller than the existing iPhone 4, possibly with the intent on delivering it midyear using mostly carryover components from the iPhone 4 to keep pricing down.
As you might haveguessed, Acer isn't providing any details on pricing or availability either, although it'll apparently have more to say on that later this month.