I just saw this at Engadget regarding the itunes Phone.
From Engadget :
http://www.engadget.com/entry/1234000887049175/
From Engadget :
This is the moment youve been waiting for: obviously we cant tell you how we got em, but after months of pining away for this, weve finally scored some actual live shots of a cellphone running Apples new iTunes Mobile software. It might just be an engineering or a production sample, and we cant guarantee whether this will actually be the first iTunes phone or not, but we do know that were looking at a pearly white E790 and that synchronizes with iTunes 4.9 (and has the same autofill menu options as the iPod shufflesee below). Not sure how much internal memory the phone has, but we do know that this sample shipped with a 128MB TransFlash card that sits opposite the SIM and under the battery and supposedly sounds every bit as good as a full-size iPod and has excellent bass response.
http://www.engadget.com/entry/1234000887049175/