It has always made sense for Archos' to make a phone given that they have been making standalone personal media players for years. Now we know they have a 5-inch Android tablet up their sleeve, but the company will release a phone-phone early next year says Archos CEO Henri Crohas.
The company will launch a smaller all touchscreen phone (around the size of the iPhone is our guess) in early 2010 that will run Google's Android and be powered by Texas Instruments' OMAP TM3 platform (the same that is in the Palm Pre). The 3G enabled smartphone will most likely be sold unlocked but also through carriers. My guess is that it will hit Europe before anywhere else.