Motorola and Apple are all set to launch their iTunes phone at the V music festival in Europe.

Last December Motorola had promised a phone with iTunes that would be made available early in 2005. The phone may be the Motorola E790 that will allow users to take the music stored in their personal computer files and download it onto the Motorola mobile phone using iTunes software.

Apple hopes the move will extend its lead in the digital music market as this move will also allow iTunes customers to listen to their favorite tunes on the move, without the need to buy an iPod.

The V festival is sponsored by Virgin Mobile, which could mean that Sir Richard Branson might have made a deal with Apple and Motorola to offer the iTunes phone or may have decided to support the phone.

However, it's now believed that there may be two separate versions of the iTunes phone: one that will debut in the UK and the other in the US.