technocoy said:is because they see that, as much as they don't like it, that the mobile phone IS becoming the be all convergeance device... it's becoming what the PDA wanted to be. If they don't get in on these early product experiments young hipsters will start to purchse the sony ericsson walkman phone and the likes and the iPod itself will start to slip in marketshare. I could definitely see apple eventually creating some type of iPod/smartphone device. they are biding their time just like they did with MP3 players so they can see what this new "convergeance" craze brings, and then slap it with a beautiful product that instantly "get's it right" and own another product segment. Apple is essentially becoming a daytrader of sorts in the media device realm, as they realize that trends change and that those same trends are also tied to the latest technnology. It could work out quite nice for them.
But to me you're talking about two totally different products. The iPod and the cellular phone. They are not the same. I like my iPod because I can store 5000+ songs on it, and 5000+ pictures on it -- and that's what its good for. I like my cell phone because I can call people on it. Yes, I occasionally use my cell phone for its calendar abilities - but more often than not it's to call my office and see if my calendar is clear on _x_ date.
No iTunes based phone is ever going to be built with enough memory to hold more than a hundred or so songs -- otherwise you're talking about pricing out the shuffle or the cellular phone itself.