Company hopes that revised phone will sell better than first. The new phone, the SLVR L7, is a thin non-folding phone, styled similarly to Motorola's best-selling RAZR clamshell phone.

The first phone that allowed owners to transfer music from their computer's iTunes library, the Motorola ROKR E1,was launched in September delivered many problems. Chief among reviewer complaints was that the ROKR would hold at most 100 iTunes songs, regardless of memory capacity, and that transferring songs took too long.

A second version of the ROKR is expect this year, with a faster transfer speed. However, it is not yet clear if it will feature iTunes or another music service.

Cingular is selling the SLVR L7 for $199.99 with a two-year contract.