I don't think that Apple will launch their own Ipod phone. They'll just partner with another company, like Motorola, Nokia, etc. (like they are already doing now) and the phone manu's will have to come out with a new phone every year, not Apple. All Apple has to do is give their partner the info. needed to be Ipod compatible then sit back and let the royalties roll in from the partner company. That allows Apple to continue to concentrate on their Ipod while their partner concentrates on making phones that are Ipod compatible. I don't see this as being any risk to Apple, unless those phone companies that are not partnered with Apple make some head way into eroding Ipod and Itunes sales through their own MP3 players.