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")