Recently, the rumours were given more weight after Apple filed to trademark the name iPhone in September, suggesting it's in the final stages of product development.
In the filing, Apple describes iPhone as "handheld and mobile digital electronic devices for the sending and receiving of telephone calls, faxes, electronic mail, and other digital data; MP3 and other digital format audio players."
Under the primary classification, Apple said iPhone may also consist of "electronic handheld units for the wireless receipt and/or transmission of data that enable the user to keep track of or manage personal information."
Similarly, it may include "software for the redirection of messages, Internet e-mail, and/or other data to one or more electronic handheld devices from a data store on or associated with a personal computer or a server; and software for the synchronization of data between a remote station or device and a fixed or remote station or device."
Don't put one on your Xmas list just yet though - industry analysts suggest it won't be shipping until the first part of next year.More From: APPLE