Both Android and Windows Phone 8 will talk to iTunes but need apps to help them so a little more complicated than just using an iPhone.
If you can live with that then my suggestion would be the Nokia Lumia 520 (around £120 on PAYG). Runs very smoothly for a lower spec phone and can take a memory card to boost the storage (important if you want to store lots of music on it0.
An idea of how to use iTunes with it here
Why Windows Phone over Android – simple, at that price point Android phones can struggle performancewise to run smoothly. The cheaper Nokia’s running WP8 do not suffer from this.
Cheers
Danny B