The result is a video entertainment-oriented smartphone that has been developed to allow users to enjoy video with unparalleled image quality.

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But analysts said financing and the project's completion remain a challenge, as cities and investors more carefully scrutinize entertainment-oriented developments.

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And if the plans of Apple's rivals in the world of Windows-based computers are any indicator, Apple should by all rights be ready to make another leap into entertainment-oriented hardware.

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Youth-oriented TV drama factory The CW is hoping that Entertainment Weekly readers are interested in taking Twitter from smartphones and computers to the printed page -- er, at least a printed page with an LCD insert attached.

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For instance, Apple and Intel could leverage each other's strength to go deeper into the home entertainment realm, such as with TVs or a hub device that is more networking- and satellite-oriented than it is computer-oriented.

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