Link: MacUser - Mac News, Reviews and Know-How

Gavin caught this on MacUser and sent it over to me.

Apple will release two mobile phone models in the first quarter of 2007, according to Prudential Equity Group analyst Jesse Tortora.

Both will have iTunes support for music playback, while one will also have video capabilities, Tortora said in a note to investors.

‘We have learned that one model will be a smart phone, including integrated keyboard, video and music capability, while the other model will be a slimmer phone with music capability,’ he wrote. ‘At least one of the models will include WiFi.’

He added that his sources indicate that initially Apple will produce limited quantities of the phones to test the market.

Bring it! As predicted. They don’t have a choice in the matter. It’s either produce an iPhone or let their iPod market be swept away by the mobile handset makers. I hope Apple do a good job with the iPhone…

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