Softbank Japan and Apple working on iTunes phone

[Giovanni Dimitropoulos]

Japanese Web and telecom conglomerate Softbank Corp. is working with Apple Computer Inc. to develop mobile telephones with built-in iPod music players reports the Nihon Keizai Shimbun a news agency in Japan. The music playing phones can download songs directly from Apple's iTunes store. Last year Apple along with Motorola had developed the Rokr phone which was a major flop due to limited number of songs it could store. Speculation has mounted that Apple is developing its own mobile phone -- popularly labeled the iPhone -- that will combine the stylish design of its iPod music and video player with mobile phone features.

Apple and Softbank have agreed to co-develop the phone for sale as early as this year. The device is expected to carry both the Softbank and Apple brands. There is no official conformation from Apple yet.