Forrester Research analyst Charles Golvin thinks cellphones will never completely replace pure music players like the iPod.

"They're going to be phones first, music players second," he told The International Herald Tribune.

According to the article, Golvin predicts most music-playing phones will rely solely on flash memory chips, limiting the amount of music they can hold.

But Yankee Group analyst Linda Barrabee thinks many consumers will want musical phones. She pointed to the popularity of ring tones – "a $2.5 billion global market".

Apple is not unaware of the popularity of mobile phone music. In July this year it announced it had struck a deal with Motorola that would mean some Motorola phones will be able to download music from Apple's iTunes store by connecting to a computer.

There is some speculation that Apple may make an announcement at Macworld San Francisco related to this mobile phone project with Motorola.