Just when we thought we've gotten the first confirmation that "iPhone" is in the works, here comes news that would put the phone back in the "mystery files" folder.

Hon Hai Precision Industry Co. (a.k.a Foxconn International) has won a contract that will have the company manufacture Macbooks and, to quote Forbes.com, "12 million mobile handsets that also function as music players".

We did warn about a possible mistranslation from the original source, and that the mobile handsets could probably be just MP3 players. We didn't put much thought about it until Hon Hai declined to comment on the announcement, saying that it doesn't respond to "market rumors". So, there goes our supposed confirmation.

And to keep the iPod phone shrouded in mystery,a Foxconn spokesman said that the company provides mobile phone manufacturing services to Motorola and Nokia Ojy. He added that Apple is not one of Foxconn's existing customers (in the mobile phone business, that is).

Now, we're back to where we started from. The best thing to do? What we usually do. Wait.