Business Week reported today that Motorola and Cingular are collaborating on a revamped . Though the fabled "iTunes phone" was introduced to huge fanfare in September, the Rokr E1 stumbled out of the gate due to an uninspiring design, limited features, and a paltry 100-song limit. Plus, it didn't help that Apple unveiled the iPod Nano the same day. According to Business Week, Motorola has delivered 500,000 Rokr E1s, and the company denies reports of rampant returns. Still, Motorola is apparently learning from its mistakes and next year will roll out an upgrade to the phone that includes a megapixel camera; a 1,000-song memory; and a sleeker, sexier design. It's unclear, however, whether the new Rokr E1 will have iTunes compatibility.