The rumor mill is gradually picking up in activity when it comes to the next gen iPhone. Backing information GeekSmack got from its sources regarding the next-gen iPhone, it appears that a new report has surfaced citing sources in the Taiwan handset supply chain stating that Apple has contracted to produce a UMTS/CDMA hybrid iPhone, allowing Apple to sell a single handset to carriers worldwide—most notably Verizon Wireless.

The new iPhone will reportedly be compatible with CDMA2000 networks (such as Verizon’s US network), while maintaining compatibility with UMTS 3G networks by using a new hybrid chip produced by Qualcomm. Sources also state that the new iPhone will have a 2.8” screen, which is notably smaller compared to the current iPhone’s 3.5” display. Last summer, some pictures surfaced of a 2.8” iPhone model surfaced over at iLounge, which may be viewed below:

This report, originating from OTR Global and provided to AppleInsider by an industry analyst, states that Asustek subsidiary Pegatron will be in charge of building the new hybrid phone deviced rather than Hon Hai, supposedly to prevent the company from being “constrained by a single-source assembler”.

Of course, all of this is pure rumor at this point and nothing’s confirmed, but there’s a good chance that this information is real. We’ll be keeping a close eye on the new iPhone, and, if we find anything else out, we’ll be sure to write about it. Have any information? Feel free to tip us on news.