An article in BusinessWeek today takes rumours of an Apple and Verizon partnership even further, suggesting that the companies could be working on two "iPhone-like" devices.
According to two people who are "familiar with the matter" one device is a less expensive "iPhone lite" type device while the other is a "media pad" which would be used to listen to music, view photos and watch high-definition video. This device would have the ability to place calls over a WiFi connection. The media pad device is described as smaller than an Amazon Kindle eBook reader but the touchscreen is larger than that of the Kindle display.
"The media pad category might go to Verizon," said the person who has seen the device. "We are talking about a device where people will say, 'Damn, why didn't we do this?' Apple is probably going to define the damn category."
One of the sources adds that at least one of these devices could arrive as early as "this Summer".
BusinessWeek also managed to get Verizon Wireless CEO Lowell McAdam to confirm that his company was in talks with Apple.
[Update] The Wall Street Journal adds further credence to the story.
Apple has had discussions with Verizon in recent months about its product roadmap, including a mobile multimedia device that is bigger than the iPod Touch but smaller than a laptop, one person familiar with the situation said. However, the talks have not become advanced, the person said.