It features a dedicated iTunes music key and a track-ball-like navigational pad along with a Bluetooth stereo headset and USB 2.0 connectivity.
This phone will support UMTS and it should be available in the first quarter of 2006.
"Expect a phone with a 1 megapixel camera, a 3.5 millimeter earphone jack (same as the iPod uses), and enough storage capacity to hold 1,000 songs -- all capabilities Motorola has confirmed," the report said. "The current phone's basic design will be replaced by a sleek new look, which sources close to the company say will be an elegant slider format."More details over here.
It looks like this phone will be a lot better than the original ROKR E1 iTunes music phone. Additionally, Motorola is preparing at least two other phones (the SLVR L7 and RAZR2) with support for Apple's iTunes.