iPhone

There have been some rumours lately that Apple is to enter the cell phone industry, producing a gadget named iPhone.
I read from an important newspaper today that such rumours are true: actually, they've given a company in Taiwan the rights to produce their new item, for which they plan to produce between 500,000 and 600,000 units only in this year.
The phone will also include a high resolution (2 megapixel) camera, iPod and cell phone functions.
The price has not been published yet, but what the heck? Why would I want to buy a mobile phone that contains an iPod if I already own one? Is Apple thinking of converting us all in "iSheep" for their products?
Hm... sounds bizarre to me. They'd have to convince me that the battery is long lasting and the reception and phone functions are better than the ones that other competitors (such as Nokia and Motorola) can offer.