A report by OTR Global says Apple will launch a new 'worldmode' iPhone in Q3 2010 with a smaller 2.8" screen.

The report which was provided to AppleInsider cites sources in the Taiwan handset supply chain. It claims that Apple has contracted Asustek subsidiary Pegatron to build a new hybrid phone which will work will all global handset carriers whether UMTS or CDMA.

Apparently the phone will gain compatibility with CDMA2000 networks (including Verizon) while still keeping compatibility with UMTS 3G networks using a new hybrid chip produced by Qualcomm.

The phone is also said to have a smaller 2.8" screen. Interestingly, in June, 2008 component photos of a smaller 2.8" screen were posted by iLounge. A Taiwanese company claimed they were going to be used in an upcoming iPhone.

The OTR report also claims that despite Verizon's ad campaign that attacked Apple the company did manage to hammer out an agreement with Apple to sell the iPhone within the year.

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