More evidence of smaller iPhone on Verizon?

The rumor mill's cranking up once again about that smaller iPhone, and this time the story goes that it will have a 2.8-inch screen instead of the current 3.5" display. Apple Insider reports the unconfirmed report from an industry analyst that Verizon Wireless will be rolling out this new iPhone in the third quarter of 2010.

The upcoming handset will allegedly use a dual-system chip from Qualcomm, able to operate on both GSM/UMTS network of AT&T and T-Mobile as well as the CDMA network of Verizon and Sprint. It's an intriguing rumor, but a lot can happen in nine months.

Via Apple Insider