Rumor Mill: Cingular to launch iTunes phone

Cingular Wireless is reportedly in talks with Motorola to offer Motorola's long-anticipated iTunes mobile phone. According to the rumors, Cingular, Motorola, and Apple Computer are working out a revenue sharing agreement that could lead to the launch of the device by the third quarter. Motorola has repeatedly said it plans to ship the iTunes phone in the third quarter. Cingular is reportedly interested in the iTunes phone because the carrier hopes it will be the next hit handset. Cingular scored a huge success with Motorola's Razr, and the carrier is looking for the next "it" phone to help maintain its lead in the US wireless market.

Motorola and Apple were originally scheduled to debut the iTunes phone at 3GSM in Cannes but were forced to delay the device's launch. Insiders speculated that carriers were uncertain how to make money off the device and were instead interested in pushing their own mobile music services. If Cingular offers the iTunes phone, it seems likely other carriers will follow suit.

For more on the Cingular, iTunes phone rumor:
- read this article from The Register

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