Rumor says: Sony is recently working on the next-gen touch Walkman mobile phone. The flying words said that it will feature 16 and 32GB of storage and will be the new spearhead music player at Sony. It is also claimed as the iPod Touch competitor as it has WiFi connectivity and support various music and video formats. There will be an integrated web browser which allows you to download music from Amazon store and a Sony online store is expected as well. FM radio is available too.

[via Ubergizmo]