Apple's upcoming iPhone will go on sale next month with two memory capacities and no ties to a specific network, it has been claimed. The 'small as s**t' handset is based on a slider form-factor, it's said - presumably to better match the iPod design ethos.

The latest claims come from Digg.com founder Kevin Rose, whose past pre-Macworld Expo allegations have proved pretty close to the mark, according to a MacRumors.com write-up. Rose' members-only podcast points to 4GB and 8GB iPhones priced at $249 and $449, respectively, neither of which will be tied to a network.

If Rose's claims are correct, the handset's clearly designed to operate as an iPod rather than simple a phone that can play music. He said his "solid" source had pointed out the upcoming gadget has two batteries, one for music playback, the other for the phone, so that listening to music all day won't limit the user's ability to make and take calls.

Rose said he doesn't know anything about the handset's operating system, but his source claimed it looks "cool", which would tie in with past rumours that the phone's OS is either based on or looks like Mac OS X. ®