Insiders at the Taiwanese manufacturer BenQ claim that Apple has been looking for a partner to help in the manufacturing of a new range of iPod mobile phones.
The device which is expected within the next few months has been long rumoured and as of yet no details have been supplied.
"An iPod phone is definitely coming. BenQ will not be making it as we are in competition with Apple, however, several of our suppliers have been approached to manufacture parts. Among manufacturers in Taiwan it is common knowledge. The issue for many is the availabilty of parts if the phone takes off," said an unnamed insider.