Update 2: Apple Insider has posted a “largely unedited” mockup of what they claim to picturing the iTunes Phone/iPhone here. They claim it originated from an internal Motorola document dated this month.
Update: Since our report, Apple has released iTunes 4.9, which we can confirm does include multiple mobile phone references in its resource files. However, it only refers to mobile phone, and not iPhone, which indicates Apple may be preparing to launch a campaign of supporting a broader range of mobile devices than just iTunes-integrated phones.
Reuters is reporting that Cingular is considering accepting the iPhone (aka The iTunes Phone). The GSM-based phone has been rejected by most U.S. carriers, Sprint and Verizon both declined to offer CDMA versions of the device. T-Mobile has not made any comment about the device, and Cingular has tended to dismiss the device rather than state a direct denial of plans to release it.
However, late yesterday Reuters UK announced that Apple and Motorola are continuing in talks with Cingular to carry the iPhone. Both Apple and Cingular PR have declined to comment. The iPhone conflicts with Cingular’s other music offerings, specifically the mMode Music Store which relies on Microsoft’s WMP10 DRM.
Assuming Cingular has not yet made a final decision on the matter, they are expected to soon, before Apple’s expected announcement of new iPods, which appears to be timed to accommodate the announcement of both devices.