Prudential Equity Group analyst thinks Apple is preparing two MP3-playing cellphones for January's Macworld, RedHerring notes.

“Based upon our early checks, we expect Apple to unveil two models of its widely anticipated cell phones,” Prudential Equity Group analyst Jesse Tortora said in a research note Monday. “We believe the company could introduce the phones at its MacWorld Conference in January.”

Mr. Tortora had more details. The analyst said that one of the phones would be a smart phone featuring an integrated keyboard, video, and music capabilities. The other will be a slimmer phone with music capabilities. Also, at least one of them will feature Wi-Fi, he wrote.

You knew Apple was working on these - any device that everyone carries and is loaded with personal style, Apple must have a part of. There are concerns though: Will people want a cellphone to be an iPod/video player/smart phone? I think yes. And will all these features drive the battery life down to nothing? Maybe.