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Apple iPhone (iPod + Cellphone) in Q4 2006

Apple iTunes iPhoneThe much awaited Apple iTunes cellphone (called iPhone) will hit the shelves later this year.

Apple is working on "an iPod with phone functions" and could end up using Hon Hai Precision, a Tiawanese contract electronics manufacturer, to help them make the phone, says Johnny Chan, a J.P. Morgan analyst based in Hong Kong. Hon Hai has a big role in making the iPod Nano.

Barron's Online reports while the new competition for Apple's song-playing cellphone may prove troubling for all the major cellphone makers (like the Sony Ericsson W300 Walkman mobile phone ), it will likely have the biggest impact on Motorola. (Motorola SLVR L7 runs Apple iTunes software)

Apple phone may steal Motorola's appeal (registration requred)

Source: Apple to introduce iPhone this year, says Barron's

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