Awaiting Apple's iPod Phone, Just Hours to Go

ByABC News
January 4, 2007, 1:30 PM

Jan. 9, 2007 — -- You probably don't realize it, but today might just be the beginning of something new for your pocket or purse.

Rumors are flying in cyberspace that Apple Computer is set to introduce a new iPod that won't just deliver music and videos, but will take phone calls as well.

For months, blogs and technology analysts have been buzzing that Steve Jobs will unveil a phone/video/music device in early 2007. With the company's annual expo set to begin, anticipation is high.

"We will definitely see an Apple wireless phone product introduced this year," said Kaan Yigit, president of Solutions Research Group, a Toronto-based technology consulting firm. "Whether it's introduced [this]Tuesday or not is a big question. If I were guessing, I'd be very surprised if they didn't introduce it then, because there's no new frontier that they could break with their existing product lines."

The device is believed to be part iPod, part cell phone and the newest must-have portable gadget.

It seems to most Apple-watchers that this month's Macworld Expo, scheduled to run from Jan. 8 to Jan. 12 in San Francisco, would be the perfect stage on which to introduce the device. The conclave has nearly always delivered an innovation at the annual event.

Tim Bajarin, principal analyst at Creative Strategies, has been going to Macworld since the event began in 1985, and knows the Apple Computer buzz machine as well as anyone outside the company.

Bajarin was there when a bow-tied Jobs introduced the revolutionary Macintosh computer in 1984 -- the computer actually said "hello" when the sheet was removed, astounding the audience.

He says the iconic CEO is a master of using his conference keynote address to electrify the tech world.

"He uses the Macworld stage to create great interest because he's become such a force in the industry for driving future plans," Bajarin said. "There's no question that phones are becoming more important as music platforms. At this point, Apple has to address that competitive challenge, but it's really to hard to tell until Jobs gets up there whether this is a part of their strategy in the short term."