Rumor Mill: Motorola says Apple will build handset

Motorola CEO Ed Zander said "it's only a matter of time" before Apple will build its own mobile phone. The prediction followed Zander's downplaying of comments he made a few days ago about the iPod Nano being unremarkable. Motorola and Apple co-launched the iTunes ROKR phone earlier this month, and it makes good business sense for the CEO to patch up with Apple since the ROKR's popularity depends on iTunes. Insiders say the ROKR was a test run for Apple. Zander's comments fuel increasing rumors of an imminent cell phone developed exclusively by Apple.

For more on Apple's rumored smart phone:
- take a look at this article from CNET