Motorola has developed a mobile phone equipped with features the company hopes will let it seize a slice of the Apple's iPod market.

Motorola chief brand officer Geoffrey Frost yesterday demonstrated its E398 mobile phone. The device is feature-rich, boasting stereo speakers, a digital camera and removable memory. The unit is expected to ship in the US over summer and to reach Europe this autumn.

Frost describes the device as a: "Sort of mini iPod that makes phone calls. It's pretty cool."

Frost described Motorola's new product as a complement to the iPod. "I love my iPod. It has everything I own on it musically, and I do take it with me sometimes. I always have this [E398] with me."

The company is also developing a similar device that also plays video Frost said, describing the market for such devices as "going to be worth a lot of money."

The device was first exhibited at CeBIT.