Motorola Embraces MSFT, Still Sticks With iTunes

I love it.  First Motorola announces that the ROKR E2 will run iRadio instead of iTunes.  Then Motorola announces at 3GSM that it will be developing a line of music phones using Windows Media technology instead of iTunes.  Too funny.

Unlike the ROKR E1, the new phones will be able to download music over the as well as through a PC, and will be able to transfer music between devices freely.  The phones may also support the Open Mobile Alliance (OMA) standard, but that has yet to be determined.

Motorola will continue to produce iTunes phones alongside their Windows Media alternatives, but the Windows Media phone may be favored by mobile telecom operators looking to create their own music stores.  Operator support is crucial for a phone to succeed, since 80-90% of mobile phones are sold as part of mobile telecom operator subsidies in most markets.

It's probably another reason Apple may be looking to sell mobile services through Mobile Me and the mePod...

(via Reuters, Financial Times, MocoNews)

UPDATE:  You can check out the full press release here.

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