Apple has developed an iPod with mobile phone features and will release the new product next year, an analyst said last night.
The phone isn't a rumour, but a reality, he asserts, and initial production glitches have been worked out - the device is "set for production".
"We have believed that Apple has been working on mobile phone technology for years, but we had been sceptical in terms of timing due to the difficulty for new players entering the market," the analyst said.
American Technology Research analyst, Shaw Wu, warned investors to buy Apple stock now if they want to be in position to profit from the impact of the release of the new product next year.
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"We believe this phone has been in development for over 12 months and has overcome substantial challenges including design, interference, battery life, and other technical glitches," he wrote.
"We believe that Steve Jobs is finally satisfied with the end product Apple engineers have produced in terms of quality and the right blend of phone and portable media player - and we are confident given his previous record of very high standards that this will be no exception," he added.
The design will be an iPod nano-like "candy bar form factor" and come in three colours (black, white, and platinum), the analyst explained.