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NYTimes: Apple working on cellphone-PDA hybrid

A recent New York Times article (free subscription required) discusses the possibility of Apple working on a cellphone and a Palm-like personal digital assistant hybrid, dubbed the iPhone by industry analysts. The article cites features and utilities in the forthcoming Mac OS X 10.2 and recent behind-the-scenes problems between Palm and Apple over linking Palm’s devices to Mac OS X — with apparently little cooperation on Apple’s part — as the main clues that Apple is planning to introduce such a device. The article also notes Apple’s deal with Pixo, the company that designed the software for the iPod, includes a license for Apple to use Pixo’s software with a second product. “When you connect the dots, you end up at a phone,” said Needham & Company analyst Charles Wolf.

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