MacRumors.com

As widely anticipated, Apple and Motorola finally announced the iTunes-capable phone that has been the subject of rumors and speculation for over a year.

Motorola and Apple today announced the availability of the world's first mobile phone with iTunes, enabling music lovers to transfer up to 100 of their favorite songs from the iTunes jukebox on their Mac or PC to their mobile phone.

The new phone will be available in the U.S. through Cingular. Cingular has updated their website and provided pricing information on the new phone. The phone is available for $249.99 with a 2 year contract.

The phone features a color display for album art, dual built-in stereo speakers and stereo headphones.. It supports music, audiobooks and Podcasts and syncs with iTunes. The phone pauses music automatically during incoming phone calls.

More details available at http://www.apple.com/itunes/mobile/

[Update] iTunes Phone Driver 1.0 is now in Software Update

iTunes 4.9 or later features the ability to transfer music to mobile phones. This driver is required for iTunes to communicate with these supported mobile phones.