iPod cellphone: mobile phones with iPod music player

Softbank President Masayoshi Son and Apple Chief Executive Officer Steve Jobs met and reached a basic agreement on this partnership in cell phone handset operations, the Nihon Keizai Shimbun said, without citing sources.

The report did not disclose where and when the meeting took place.

The new handsets are to be released in Japan sometime this year at the earliest, the Nihon Keizai said.

Initially, the handsets would have to be connected to personal computers in order to access the iTunes Music Store to download music.

But as early as next year, the iTunes Music Store will unveil a new service that will let users download songs directly to compatible cell phones, which the two firms will develop, the Nihon Keizai said.

Details such as the fee for downloading songs are to be discussed later, the newspaper said.

The reported move came shortly after Softbank bought the Japanese unit of British mobile telephone giant Vodafone.

By tapping Apple's strong brand name, Softbank hopes to increase its competitiveness against rivals NTT DoCoMo and KDDI, the Nihon Keizai said.

For Apple, the tie-up will allow it to enter the market for cell phone handsets, pushing ahead with offerings that combine the handsets with its music download services in the United States and elsewhere, it said.

Via Yahoo! News