First iTunes Phone to Be Available From Cingular?

The iTunes phenomenon is expanding rapidly, and now is targeting the mobile phones market. According to the Reuters agency, Cingular Wireless is considering selling a Motorola Inc. cell phone that can play music using the iTunes music service.

RBC Capital analyst Mark Sue said in a recent research note that Apple and Cingular were working out final details on revenue sharing, but Cingular spokeswoman Jennifer Bowcock and Apple representative Natalie Kerris declined any comment on the subject.

Music and wireless companies are convinced that mobile phones equipped with digital music players will be a key source of growth in the next few years. Music providers see phones as a new distribution channel and phone makers believe that music player features will increase the cell phone sales figures.

Although Motorola has delayed the launch of its iTunes phone, the company said in March that this was due to Apple and Motorola's differing approaches to product launches rather than any lack of interest from carriers.

Several analysts have suggested that Cingular, the wireless venture of SBC Communications Inc. and BellSouth Corp., would be a logical partner for the iTunes phone as it was the first operator to sell Motorola's flagship RAZR cell phone, which has helped boost sales at both companies.

European operators are also interested in selling music downloads to mobile phones, and some are already doing so, but at a much more modest scale and by using proprietary systems.