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The skinny is that Apple Computer (AAPL) might announce a combination iPod and  cellphone at the Macworld convention in San Francisco next month.

Many cellphones already include multimedia players but few are as easy to use as an iPod. Consumers like the idea of the combination because they don't like to carry multiple devices. 

As reported in this NYTimes.com article, some models currently on the market include Motorola's (MOT) iTunes phone from Cingular - a modified Motorola RAZR called the V3i. It has a music note button that takes you right to your songs, uses the same menu system as the iPod and sets itself up when plugged in to a computer with iTunes software.

Downsides are it can only hold 100 songs and the memory cannot be expanded, which is true for most music phones. Cingular doesn't sell music over its network, other than ringtones, so you can't buy songs and have them instantly transmitted into your phone.

Sprint's (S) tune-oriented Fusic offers exclusive live music and phonecast TV shows for its customers but, although the downloads of music available through Sprint are very fast, you use up minutes while downloading and the cost, at $2.50 a song, is pretty steep. 

To read about more models and their features and ease of use read the full article here.