Apple iPhone is no longer a rumour. An iPod phone is definitely coming.

BenQ insiders say that Apple will launch an iPod with phone functions within the next few months. Several phone makers in Taiwan, including BenQ suppliers, are in talks with Apple procurement executives to cut a manufacturing deal on an iPod Phone.

Taiwanese electronics manufacturer Hon Hai Precision to tipped build the device, says a J.P. Morgan analyst.

BenQ executives will not be making the Apple iPhone as they are in competition with Apple.

Earlier, Research and investment firm PiperJaffray wrote that there's 75 percent chance of a Apple iPhone in the next 12 months.

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