SAN FRANCISCO -- Taking the wraps off yet another Apple innovation, CEO Steve Jobs went back to the phone, merging it with the company's landmark iPod and personal computer into a multi-tasking device.
"This is a day I've been looking forward to for two and a half years," Jobs told an enthusiastic crowd in his speech Tuesday at the Macworld Conference & Expo in San Francisco.
Dubbed the iPhone, the new device combines the functions of a cell phone, music player and mobile computer with a full-fledged Web browser and a 3.5-inch wide touchscreen.
With a single motion -- a sweep of his finger across the iPhone screen -- Jobs brought the crowd to roaring applause. He demonstrated how the device, which has a virtual keyboard and taskbar, uses the iPod's music- and movie-playing abilities. To show off the Web browser, he searched for the nearest Starbucks cafe and dialed it, jokingly ordering 4,000 lattes.
The iPhone, which will be available in June starting at $499, will come in 4-gigabyte and 8-gigabyte models. Cingular has an exclusive multiyear contract to provide service for the iPhone.
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Avi Greengart, a mobile devices analyst for research firm Current Analysis, said the iPhone immediately stands out in a crowded market with its intuitive interface and multi-media features.
"It actually lives up to the hype. That's very impressive by itself," Greengart said.
Jobs also unveiled a new $299 device, the Apple TV, that allows users to wirelessly link their PC with their televisions, to show photos, movies and other video content. And, in keeping with the company's emphasis beyond just computers, Jobs announced that its corporate name is changing, simplifying to Apple Inc.
