This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

iTunes Hum at Motorola, Apple

Updated from 7 a.m.

Motorola (MOT) and Apple (AAPL) have finally agreed on a stage to raise the curtain on the much-anticipated iTunes phone.

The iPod-inspired music phone -- which Motorola twice pulled from introductions earlier this year, apparently under orders from Apple chief Steve Jobs -- will debut in the U.K. next month.

The planned venue is a four-stage "V Festival" concert sponsored by Virgin Mobile U.K. on Aug. 20-21, says American Technology Research analyst Albert Lin.

Virgin Mobile U.K. will be one of the first telcos to offer the phone, says Lin.

A Virgin Mobile U.K. rep said Thursday that "there is no confirmation of when this phone will be launched" and that "it is not being launched at the V festival." A Motorola representative declined to comment on the iTunes introduction.

But during Motorola's analyst day presentations Monday, CEO Ed Zander said the iTunes phone would be unveiled by the end of this quarter.

Making a show of it, Zander read the audience a fake letter.

"We're not going to launch the iTunes phone today. Steve Jobs is not going to jump out of a cake. And we're not going to launch it tomorrow," Zander said.

"But on one of the 66 days left in the quarter, we're not saying which one yet ... Apple, Motorola and our biggest operator partners around the world will announce -- and ship -- the first iTunes phone," Zander said.

He concluded the iTunes hype by adding: "We believe music will be the next big experience, the next big thing."

Observers note that rolling out a music phone at a concert featuring more than 57 bands would harmonize with Apple's marketing style. The scuttled introductions earlier this year raised speculation that the phone companies couldn't agree on how to slice the music download business. But Motorola's Zander explained that Apple wanted to schedule the introduction when the music phone was available for sale.

The delays seemed to have only fueled greater anticipation over the marriage of the iconic iPod and the ubiquitous cell phone.

Meanwhile, here in the U.S., the market may have to wait a while.

Though Virgin Mobile operates in the U.S., the service is a brand used to resell Sprint's (FON) network. Motorola's iTunes phone, dubbed the Rokr, is a global systems for mobile, or GSM, phone. Motorola does not have a code division multiple access, or CDMA, version of the phone that could be used with Sprint's network or for that matter with Verizon's.

Virgin Mobile U.K., which has 4 million subscribers, sells service using Deutsche Telekom's (DT) T-Mobile network in the U.K. Industry watchers say it's likely that a GSM operator -- either T-Mobile or SBC (SBC) and BellSouth's (BLS) joint venture Cingular -- will be the first in the U.S. to offer the phone.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs