Apple's rumoured iPhone has generated more market chatter today, with reports that chip maker, Broadcom, will supply chips for the new iPod phone.

Meanwhile, a second report this morning claims Apple to be working on a second model iPhone, this time equipped with iChat support.

Wall Street whisperers are predicting the devices so strongly now that Broadcom shares climbed almost 6 per cent yesterday on strength of the claims, though market warmth to the launch of the Nintendo Wii (which contains Broadcom chips) also helped.

Apple has reportedly contracted Foxconn to manufacture 12 million of its new handsets for launch in 2007. American Technology Research analyst, Shaw Wu, claims: "From a technical standpoint, the phone is pretty much done. It's a big endeavour and we believe it's beyond speculation."

Wu also launched the new rumour last night, when he claimed Apple is building a second phone that supports iChat instant messaging, but warned that his second rumoured product still seems to be in the "development phase".

"From our understanding, it will leverage off existing iChat software that runs on Macs," Wu warned.

Wu predicts at least 14 million iPods will be sold this quarter.