iTunes phone to store only 100 songs

A source who was involved with creating commercials for the iTunes phone claims the handset will only hold 100 songs as Apple fears a iPod cell phone with more memory may hurt its iPod shuffle sales.

Engadget also wrote the iTunes phone may be based on Motorola's E680i which runs Linux, has SD/MMC storage and features integrated stereo speakers along with Bluetooth headphones support. This model also has a touch screen and Engadget speculates Apple may even have prepared a new mobile operating system for this phone.