Softbank Corp and Apple are said to be planning to develop a mobile phone with iPod like functionality and have the ability to download songs directly from the iTunes Music Store.
The Nihon Keizai Shimbun is reporting that Softbank President and Apple CEO have met up and reached an agreement on the basic functionality.
"These handsets are to be released in Japan sometime this year at the earliest," the states the Nihon Keizai Shimbun.
"Apple, which will be selling cell phone handsets under its own brand for the first time, is expected to outsource production," the report said. "The company is believed to have chosen Softbank as its partner because Softbank plans to offer high-speed Internet access for cell phones, with a focus on improving convenience for consumers."