CNet quotes Motorola's Ed Zander with teasing comments about Apple's plans for a "smart phone".
And we know that [Apple is] going to build a smart phone--it's only a matter of time
His comments appear to be primarily speculative. Rumor and speculation about an Apple-branded phone has been ongoing.
Meanwhile, in the article, Zander was defending comments he had made against the iPod nano. Those comments were "taken completely out of context" and Zander reports that they still had a great relationship with Apple.