iPhone In Works According to Bear Stearns

Bear Stearns analyst Andy Neff met with Apple executives and has confirmed Apple's plans to release an iPod phone.

According to Neff, the iPhone is "in the works". The following was information sent to Bear Stearns clients.

Innovation Is Key To Growth: Next Gen iPod Coming. While AAPL did not comment on potential new products, in addressing the issue of emerging competition and potential commoditization of iPod, it appeared to us that AAPL is likely to refresh the iPod product line ahead the holiday season (as it has done every year since the introduction of iPod). However,