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Well it looks like this story is starting to grow legs. There were initial speculations that Apple may be working on an iPod with Cell service, but maybe its just this. (see below)

An anonymous tipster submited this photo to Engadget today. Not sure if its real or not, but the story sounds legit and the photo seems real. BUT : If its going to ride cingulars network as the story indicated, why is there no orange cingular simm card, why the Apple logo? Or is this going to be a "Apple Branded" service leasing Cingular’s network?

"having a friend who came over to show off his new cellphone (pictured), a one-in-fifty test unit for trying out Apple’s Mobile Me service, which is apparently an Apple MVNO slated to run on Cingular and to be launched in February"

Source : Engadget

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Chris Leckness is the Owner/Administrator of Mobilitysite. He is a Microsoft MVP, Mobile Devices and a member of the exclusive focus group, Mobius. Chris runs a Mobilitysite, GotZune, and a few other smaller sites and blogs. His personal blog is chris.leckness.com.