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iVirtua has heard rumors that Apple will be realising an Electronic Reader like the Sony Reader, basically the product will allow you to read electronic books, newpapers, etc.
An unnamed (for obvious reasons) said:
"Apple is looking to bring out an iPhone family of devices that’ll extend your iPhone into new usage patterns".
"Since Jobs is an avid book reader, and Ives reads a ton of RSS feeds (the executive says he brags that he reads as many feeds as Scoble) they were looking for a new device that’d make it possible to read, while using the wireless features of the iPhone."
I'm sure Sony will be quaking in their boots that Apple will releasing a competitive product.