Apple phone ready for production?

"Our research indicates that an Apple-designed smart phone has moved from concept to prototype and recently has progressed to near completion as a production unit," analyst Shaw Wu told clients in a research note on Tuesday. "We believe this smart phone has been in development for over 12 months and has overcome substantial challenges including design, interference, battery life and other technical glitches."

Pointing to the existing smart phone market, Wu noted the challenges companies face when trying to produce a converged product of high quality. However, he said Apple chief executive Steve Jobs "is finally satisfied with the end product Apple engineers have produced in terms of quality and the right blend of cell phone and portable media player."