Apple to launch iTunes phone, finally

01-09-2005

by Charlie Taylor

Rumours are circulating that Apple is finally about to launch an iPod mobile phone that will have iTunes onboard, allowing users to play and store music.

According to a number of media reports, the company is due to announce a partnership with Motorola and Cingular Wireless next week to market a mobile that doubles up as a digital music player.

Apple, which is renowned for keeping schtum about its plans, has refused to confirm or deny the rumours; however, it has indicated that it intends to make a major announcement at a press event in San Francisco on 7 September. Moreover, it has been common knowledge for some time now that Motorola is intent on launching a mobile phone with iTunes on it before the end of the third quarter.

In July 2004, the mobile manufacturer officially announced that it was partnering with Apple to enable music lovers to transfer tracks PCs or Macs using iTunes. At present, it is not clear whether users will be able to download music directly over a mobile network.

Commenting on the decision to license iTunes to Motorola last year, Apple's CEO Steve Jobs made clear its intentions to go mobile.

"The mobile phone market -- with 1.5 billion subscribers expected worldwide by the end of 2004 -- is a phenomenal opportunity to get iTunes in the hands of even more music lovers around the world and we think Motorola is the ideal partner to kick this off," he said.

Although Apple is the runaway leader in the digital music player market thanks to the success of the iPod, some analysts are suggesting that many music fans may be disappointed with the new phone.

According to a report in Forbes magazine, early versions of the phone have been designed with a 25-track capability, which is roughly equivalent to two albums worth of music. However, the article does suggest that the version which will be made available to consumers may offer more storage space.

If the company does release a mobile phone with limited storage capacity for tracks it could find itself coming under pressure from a number of rivals who are intent on branching out into the mobile music market.

Earlier this year, Sony Ericsson announced a Walkman phone -- the W800 –- which is also expected to hit shelves during the third quarter. Equipped with a 512MB memory stick, the Walkman phone can store up to 150 songs, the equivalent of around 12 CDs from a user's collection.

In addition, Microsoft announced earlier this year that it has licensed its Media Player software to Nokia. Under the agreement, people will be able to wirelessly download music to their Nokia phone to transfer the tracks to a PC running Windows XP and a full version of Windows Media Player.

Nokia also recently unveiled its new 3G 6681 model, which is designed to be a music player and phone combo, coming with 1GB of flash storage. The company has also signed an agreement with Loudeye that should see the pair launch a music download service aimed at mobile phone users.