In the lead up to MacWorld, rumours of the launch of an iPhone by Apple are rife. However, Wall Street analysts warn fans not to hold their breath as the product launch is expected to be delayed till half-way through next year.

“Based on our checks, we believe the timing of Apple’s iPhone commercial launch is around late first quarter 2007 to early second quarter 2007,” CIBC World Markets analyst Ittai Kidron wrote last Thursday.

Apple is, however, yet to even confirm the existence of an iPhone, which is rumoured to be an iPod / phone hybrid. Though the company did file a US patent application for a music player and phone hybrid device on August 7th earlier this year.

The ‘delay’ of the iPhone is even being attributed as a cause for recent price drops of Apple shares. But Jupiter Research Analyst, Michael Gartenberg is sceptical of such claims.

“I got a call the other day from a Wall Street publication asking me if the new delays in shipping the iPhone was affecting Apple’s stock price. Excuse me? Delays? Is it possible to call a product that hasn’t been acknowledged much less shipped delayed? While I know that December is the best month for Apple rumors, this is starting to get out of hand as mainstream press and analysts comment about a product that may or may not even be announced at Macworld,” Gartenberg wrote in his blog.

MacWorld has traditionally been the launching platform of Apple’s flagship devices – including the MacBook Pro and the Shuffle. And rumours are as likely to continue in the lead up to the event in January as Apple is likely to remain tight-lipped about the device.