This makes sense to me... and probably bad news for Richard Branson's Virgin Mobile brand.
A "son of iPod" mobile device this year plus profitable, innovative, content offerings / partnerships with existing carrier networks and devices would do the trick. If anyone still isn't sure, Apple's "Mobile Me" push is all about the "iPod as a platform".
Link to Engadget.
UPDATE: Wired's "Cult of Mac" blog just reported that this photo and story are an obvious fake. Bummer.
