The only threat to the Apple iPod is not from Creative, iRiver or Sony but from the Mobile phone. Recently Samsung showcased the SGH-i310 mobile phone which has a 8GB hard drive. In a year phones with 8 - 10 GB Hard Drives will be standard which will phase out the iPod. To counter this threat Apple has contacted a number of handset manufacturers in Taiwan namely HTC, Inventec Appliances, Quanta Computer and Foxconn Electronics to launch its own music phone. Neither Apple nor Handset manufacturers have commented on the news.

It is only a matter of time before we get the official announcement from Mr. Jobs.
Source
Found this cool vidoe clip at TUAW.