Apparently, BenQ and Siemens are hard at work on a new phone from their combined kitty: the BenQ-Siemens Oxyon. It's not an oxymoron, thankfully, and has been designed stylishly with a pearly white finish that reminds you of the iPod.

Beneath the smooth exterior lies a full QWERTY keyboard that you can slide out. Boasting an impressive 640x480 pixels (VGA) resolution - something right out of a Japanese cell phone vendor - the phone offers a 3 megapixel camera with 3x optical zoom.

Of course, a digital music player is available as well, and it handles MP3, AAC, WAV and WMA formats. Memory expansion is possible via an SD slot provided on the Oxyon. It would be making a late entry, expected to hit the streets sometime in early 2007.

No word on the pricing yet, but watch this space for more.