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Motorola E790 iTunes Phone (Photo) [Updated]

Engadget claims to have a photo of the anticipated Motorola iTunes phone.

The phone is labeled the E790:

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).

According to the gadget site, the phone shipped with a 128MB TransFlash card and has good audio quality ("supposedly sounds every bit as good as a full-size iPod")

Update: Cellcom (Israel) has reportedly announced that they will be selling the Motorola iTunes phone later this year and has posted the same photo.