The device combines music player features (capable of holding 100 songs) with mobile phone features. The device is called the Motorola ROKR.
"This is the first device in a series," Carsten Schmidt, European manager for Motorola's retail operations, told the BBC. "There will be more coming with higher memory."
Schmidt also confirmed that Motorola is talking to operators about future versions of the iTunes phone that can download songs across mobile networks.
It features easy-to-use menus, simple navigation and playback, and the ability to simply switch from listening to music to talking on the phone and back again with the push of a dedicated music key.
It also offers a colour display for viewing album art, dual built-in stereo speakers and stereo headphones that also serve as a mobile headset with microphone. The phone connects to a PC or Mac using USB 2.0.
It will also automatically pause music when a call comes in or goes out through the phone.
The device is being rolled out globally. In the UK, potential users can acquire the phone from mid-September from Carphone Warehouse, and then with O2, followed by Orange, Virgin Mobile, BT Mobile and others, through September and October.