I can't confirm this story, but there is a report on the Internet that Motorola CEO Ed Zander demoed the highly anticipated iTunes phone at the D3 convention last week. According to the blogger, the phone will also include a 1-MP camera and a speaker loud enough to use the phone at your desk. Zander also reportedly hinted that the phone will include a hard drive.
Certainly the problem is not lack of interest from consumers in mobile music. According to a Management Network Group study of 1,000 13- to 34-year-olds, 37 percent want mobile multimedia, particularly music. Additionally, about 40 percent of consumers would be willing to put up with advertisements in order to get to their tunes for free. - Eli