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I'm not betting this rumor to be true. I seriously doubt Apple will release two iPhones in the same year. Why? A lot of the parts for the iPhone are made in Japan. Remember the earthquake/tsunami/nuke disaster? I seriously doubt they will have enough parts to releast TWO iPhones. Also, anybody can say their momma/daddy/kittycat/whomever 'works for Apple'. They just didn't specify what position. For all we know this guy's 'daddy' may just be a janitor that works the evening shift.
If Apple releases anything special this year - aside from the iPad 2, it will be an iPhone 'Lite' that is smaller.
I don't see them redesigning the iPhone so soon. From what I understand, everyone likes the sleek design of the iPhone 4.
My iPhone 4 (16GB) cost $300 with a contract, why would a 'slightly smaller' iPhone with the same design and capacity sell for $99 under contract? It doesn't sound like anything Apple would do. Just this summer they released the iPhone 3GS to sell for $49 under contract with AT&T; that phone has been out for at least three years that I'm aware of.
Sorry dude - that one seems pretty out there.
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Oh, you will. It is all a dream and since matter cannot be created nor destroyed, the dreams must be real in all their myriad forms.  -Beowulf
This Delicate Thing God Has Made
The world is measured in peasants; smaller than a unicorn but, bigger than a tidbit! 
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