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New iPod/Phone Does It All, Jobs Says

Device Adds Unheard-Of Features

Posted: 7:43 am EST January 9, 2007

Apple announced a mobile phone Tuesday that fulfills several types of rumors: it's a widescreen, touchscreen iPod and a smartphone that runs the company's OS X operating system -- it even offers a whole new way to manage voicemail.

However, fans will have to wait until June for it to ship.

The company also announced a new way to move digital content around the home.

CEO Steve Jobs said that the iPhone is revolutionary on several fronts -- including that proximity sensors know when it's near your ear, so it can shut off music and switch into phone mode.

Because of the multitouch screen, it only has one "home" button on the front. That leaves room for a 3.5-inch screen that includes all controls, as they're needed.

It will even change how calls are made and managed, the company said. Most often, users will scroll through contacts and hit a button to dial. There is also an on-screen keyboard.

Jobs said it will come in two models, a $499 version with 4 gigabytes of flash memory storage and a $599 version with 8 gigabytes. Both those prices include a two-year Cingular contract; the iPhone will only work on Cingular's network, Jobs said.

He said he hopes to get 1 percent of the market by 2008, which would mean selling 10 million phones.

More Features

Users will also get "visual voicemail" -- a listing of messages that you can listen to in any order you want, like e-mail.

With the operating system, Jobs said, it will be able to run full versions of software, including Apple's Safari Web browser, which shows the entire web pages in its widescreen mode.

It also can connect to various kinds of e-mail servers. Jobs announced a deal with Yahoo that will allow it to "push" Yahoo e-mail to the phone for free, turning it into a Blackberry-like device, though it can connect to other servers as well.

Despite all the functions packed inside, Jobs said it is only .46 of an inch thick -- smaller than smartphones such as the Motorola Q or the Blackjack.

It also can sense its position and align the screen accordingly, Jobs said, and has a 2-megapixel camera.

The phone operates on GSM and EDGE networks and also uses WiFi and Bluetooth networking. Available accessories include a Bluetooth ear piece that resembles a pen cap, and headphones with a microphone built into the wire for calls. It also offers a speakerphone.

Jobs said the battery will last for five hours of talk, video or browsing, or about 16 hours for audio playback.

Patents Seen In Device

Rumor sites and technology blogs had been interested for months in Apple patents for the multitouch screens, which allow for using more than one finger at once.

In the photo organization tool on the new phone, a user can "pinch" an image with two fingers and move them in or out to resize the picture.

The same gestures can be used to control the display of other elements, such as web pages.

Apple TV Comes On Time

Jobs also unveiled the Apple TV at the MacWorld show in San Francisco.

The device lets people stream video -- including movies and TV shows purchased at the iTunes Music Store -- wirelessly to their televisions.

The $299 box comes with a 40-gigabyte hard drive for storing shows and music, can output high-definition video and accept streams from up to five computers, and also allow those computers to share content with each other.

In September, Jobs had said a device along those lines would be available this year.

AppleGoo?

Among the guests onstage at the presentation was Google CEO Eric Schmidt. He said that the companies have talked about ways to collaborate and wondered about what he called merging without merging.

He also said that he thinks the iPhone is going to be hot.

In other corporate business, Jobs announced he was changing the name of his company. Apple Computer Inc. will now be just Apple Inc.

Industry analysts said before the address that another well-designed product from Apple could seriously threaten major tech companies such as Motorola, Nokia, Samsung Electronics, Verizon Wireless and TiVo.

Cingular launched an Apple-related phone and MP3 player, called ROKR, in 2005. But the product was widely considered a flop because it could only hold 100 songs and required users to buy songs through a computer and download the songs to the phone.

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