With Macworld fast approaching, and news of an apparent manufacturing deal in the air, Apple enthusiasts are again abuzz over the oft-rumored iPhone. Two separate reports indicate that the Cupertino company has signed a deal for as many as 12 million units.

Both AppleInsider and ThinkSecret both say that Apple is aiming to debut the devices at Macworld 2007, alongside the iTV device and a rumored refresh the flagship iPod line. It is not known how much the iPhone device would sell for, or its exact feature set.

It is widely expected that the phone would double as a music player, and could include a 2-megapixel digital camera according to AppleInsider. While the exact manufacturer is in dispute, both sites point to companies that Apple has worked with in the past.

But don't expect smartphone manufacturers to worry about Apple encroaching on their turf. At a gathering with reporters last Thursday, Palm CEO Ed Colligan dismissed the Cupertino company, saying making phones is not that easy.

"We've learned and struggled for a few years here figuring out how to make a decent phone," the San Jose Mercury News quoted him as saying. "PC guys are not going to just figure this out. They're not going to just walk in."

The first "iPhone" is expected to come in a single model. However, American Technology Research analyst Shaw Wu wrote in a research note Monday that the company is already working on a second model that focuses on instant messaging capabilities.

"We believe it will focus initially on mobile IM as opposed to e-mail," Wu wrote. He said the phone would likely be the company's smartphone model, whereas the first phone would focus more on the music capabilities.