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Cingular Considering Selling iTunes-Ready Phone, Report Says

by , 12:00 AM EDT, June 27th, 2005

US mobile phone provider Cingular Wireless is considering selling Motorola's soon-to-be-released iTunes-ready phone, a published report said Saturday.

The Reuters news agency quoted an un-named source as saying, "Motorola and Apple have been talking to Cingular about it using the iTunes phone." RBC Capital analyst Mark Sue said in a recent research note that Apple and Cingular have been hammering out the final details of a revenue sharing plan.

"Several analysts have suggested that Cingular would be a logical partner for the iTunes phone as it was the first operator to sell Motorola's flagship RAZR cellphone, which has helped boost sales at both companies," the Reuters story said.

Cingular Wireless is the largest wireless carrier in the United States, serving 50.4 million customers. Cingular, a joint venture between SBC Communications Inc. and BellSouth Corp., has the largest digital voice and data network in the nation and the largest mobile-to-mobile community of any national wireless carrier.

As usual, an Apple spokesperson refused comment on the published report. A Motorola spokeswoman also refused comment, but did reiterate that the company is on schedule to ship an iTunes-ready phone in the third quarter.

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Close Name:DawnTreader -   TMO Staff Posts: 13806 Joined: 04 Jan 2002
Subject:

Another selling feature for phones, another new market for iTMS. I don't think cell phones will pose a serious threat to the iPod anytime soon, but the ability to purchase music through a phone will help Apple extend its leadership in the digital music market.

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