September 5, 2006 12:44 PM PDT

Apple cell phone almost here, analyst says

Gossip about an Apple cell phone is indeed true, according to an analyst.

Shaw Wu of American Technology Research says "the kinks have been worked out" of an Apple-designed smart phone that will "very likely" be released in 2007.

The phone's form factor will be candy-bar style and will come in black, white and silver, according to Wu. He says he suspects Apple will be sneaky about getting its FCC approval by filing under an OEM manufacturer, but isn't sure exactly how the iPod maker will enter the cell phone market. Will the company partner with traditional carriers or use a mobile virtual network operator (MVNO) model that allows more control over the user experience? That decision, Wu said in an e-mail on Tuesday, is a big determinant in when the phone will be released.

The Apple name, loyal customers and focus on quality should amount to success in the cell phone market. Selling "(10) million units does not seem a lofty target to us," Wu said.

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