A cruddy little picture has surfaced on Apple Insider, showing what might be the first glimpse of the fabled Motorola and Apple “iPhone”—or as I like to call it, the “iTunes Phone.”

The iTunes-compatible phone in many ways mimics the iPod, according to a first-hand PC Magazine report.



“It syncs with a computer and the iTunes Music Store like an iPod does, and incorporates the iPod interface for navigating and playing digital music,” said Ron Garriques, a Motorola executive vice president.



Garriques also revealed that the phone is the first of many Motorola devices that will support iTunes this year. However, he did not provide product specs or say when the phone would be available.



Last month, Eddy Cue, Apple’s vice president of applications, said the company was ‘definitely on schedule’ to make a mobile phone related announcement within the first half of 2005.



“What we’ve talked about is a something that is valuable for the mass market,” Cue said. “It has to be a phone in the middle-tier of the market, not a $500-tier phone. It has to be very seamless to use. And we’re very happy with the results.”



No images of the phone have yet to surface in a public forum, but prototype units have reportedly been spotted with bluetooth streaming capabilities and 1GB of flash memory-based storage.



More here.