Softbank released a short statement today describing the reported Apple iTunes mobile phone plans as guesswork by the media.

On May 13th the Japanese Nihon Keizai Shimbun Saturday Morning edition reported that Apple and Softbank would develop a mobile phone that has a built-in iPod digital music player. Of course the international technology press immediately jumped on this rumor.

It is rather far fetched that Apple would do such a local deal. I mean sure Apple would do another 'cripled' iTunes phone deal as they did with Motorola, but they would not co-develop with anybody an iPod killer.
Softbank acquired the Japanese Vodafone mobile business recently and is now a player in the Japanese mobile phone landscape competing with DoCoMo and others.