SAN FRANCISCO (Reuters) - Apple Computer Inc. unveiled an eagerly-anticipated iPod mobile phone with a touch-screen on Tuesday, priced at $599 (308 pounds) for 8 gigabytes of memory, pushing the company's shares up as much as 8.5 percent.
Chief Executive Steve Jobs said the iPhone, which also will be available in a 4-gigabyte model for $499, will ship in June in the United States. The phones will be available in Europe in the fourth quarter and in Asia in 2008.
Apple said Cingular Wireless, the No. 1 U.S. wireless network, will be the company's U.S. cellular partner.
Cingular said the contract is "multi-year and exclusive."
Sam Rahman, a portfolio manager at Baring Asset Management Inc., which owns Apple shares, said the iPhone and AppleTV, the newly renamed device that allows consumers to send video to their home entertainment systems, could prove to be big boosts for the company.
"Right now the stock is trading on product announcements," he said. "It could drive additional growth for Apple at a time when they need to find another hit beyond the iPod."
Jobs also said Apple will drop "Computer" from the company's name
SECURING APPLE'S MARKET POSITION
The new iPhone could help Apple bolster its dominant position in the market for portable digital media devices. The iPod now commands more than a 70-percent share of the U.S. market for MP3 digital music players.
The 11.6 millimetre phone includes a 3.5-inch wide touchscreen display with multi-touch support and a 2 megapixel camera. It runs on Apple's OS X operating system, has the Safari browser for Internet searching and e-mail that can handle graphics and work with external e-mail services.
The iPhone can also connect to the Internet using Wi-Fi wireless technology, and has Bluetooth, the short-range wireless technology used to support wireless headsets or link to other devices such as printers.
Jobs also said that AppleTV, the device that allows users to stream movies, music, photos, podcasts and TV shows to their home entertainment systems, would ship in February. The 40 gigabyte machine will cost $299, the same price Jobs forecast back in September.
Jobs also said movies from Paramount films would be sold in on Apple's iTunes online music store in addition to titles from Disney.
Apple has sold more than 70 million iPods since they were introduced and consumers have bought more than 2 billion songs for about 99 cents each on iTunes. More than 220 television shows are also available on iTunes.
Apple shares rose $5.66 to $91.13, having touched $92.75 earlier in the session.
(Additional reporting by Scott Hillis
