WARNING: personal speculation and opinions follow iPhone? Sure, I could see it happening... eventually. Perhaps we'll see 'iPhone' software, but not a standalone device (yet). It seems to me Apple is looking for a sure-fire follow-up to the iPod, especially given these difficult economic times. Something small, popular, and inexpensive to manufacture (relative to CPUs) is a much safer bet when it comes to capital expenditure and inventory management. So, my prediction: The Apple digital camera (iShot? iSnap? . It will feature an integrated hard drive like the iPod. It will connect and charge itself over Firewire like the iPod. And it will seamlessly synchronize with version 2 of iPhoto - just like iTunes and the iPod. And like the iPod, it'll only work with a Mac... at first. If (when) Apple does release their videoconferencing software, they'll naturally release displays (and iMacs) with built-in cameras. Users with existing hardware, though, will need to add a camera, and an 'iShot' could fill that need by doubling as a high-res Firewire webcam. Again, I have no inside informaiton to confirm this. But, given current technology trends (and Apple's success with the iPod), a hard-drive based digital camera seems inevitable. And, might this *also* explain why we've yet to see the widely-rumored update to iPhoto? Happy Holidays!