It seems the 'iPhone' / 'iPod Phone' device is being hailed and praised as the 'next big thing' from Apple that will 'revolutionize the market' for cell phones.
In my opinion, the only contribution Apple could reasonably make is to take their already successful (and *simple*) iPod, and add a *simple* way to make a phone call on it... and *maybe* send a text message/email. I don't think it will have 'smart phone capabilities' (besides iPod funcationality).
I see what you're getting at, the core reason why the Apple Phone is a good idea is that it eliminates the need to have two devices. The Apple Phone doesn't need to be anything other than a basic phone and ipod in the same case to be a good idea. However to be a success it needs to lure as many people as possible away from buying the devices separately.
As a consequence you can bet that the phone is going to have a at least a 2.0 megapixel camera, internet (for iTunes), bluetooth and a feature rich (for a phone) OS.
PDA/OS X lite? V. Unlikely (unless there will be 2 iPhone ranges).
Basic syncing with Address Book, iCal and .mac mail? Almost a certainty.
IF (yes IF, not when...) Apple releases some sort of phone, it will be an iPod with the ability to place a call. Not some sort of PDA or web-browsing jack-of-all trades. I think someone mentioned this in another thread earlier, but I just wanted to restate it, as I don't think that Apple would do well to make some sort of ridiculously complex smart phone. I would estimate the price to be around $299-399, with 4/8GB flash or something like that.
The Apple Phone IS going to happen- analysts agree that mobile phones are a threat to the ipod, Apple hasn't stayed top by standing still.
I have a Samsung D600, which is a nice phone thats not too expensive. I'm sure its got the processing power to sync with my computer if only someone made the software- this is where apple come in.
The cost of manufacture isn't that of an ipod nano PLUS a phone, they'll share the same screen and case, and interface etc. So the cost is really that of a phone + Flash Memory + 2nd ipod Battery. £180 ish ($350, i love dashboard...) would be my guess, but the US price would probably be lower since the UK is the land of the rip off.