iTunes Phone on Hold

But that was up until the Razr phone came along late last year. The popularity of the thin metal phone helped Motorola regain some of the business it lost to Nokia and retake the design leadership it lost in the late 1990s.

Music phones are now expected to fuel a whole new upgrade cycle as consumers opt for handsets that can double as iPods. More importantly for Motorola, the Rokr phone will incorporate Apple easy-to-use iTunes software. If industry pundits are correct, Rokr's success will help Motorola continue the momentum Razr started.