On Sunday, engadget posted info about an iTunes phone:
It
might just be an engineering or a production sample, and we can’t guarantee whether this will actually be the first
iTunes phone or not, but we do know that
we’re looking at a pearly white E790 and that
synchronizes with iTunes 4.9 (and has the same
autofill menu options as the iPod shuffle—see below).
cNet thought it was going to launch in June.