iPod Phone, iPod Nano

Apple Computer Inc. CEO Steve Jobs
introduced a music-playing phone
Wednesday that is capable of storing
about 100 songs. The iPhone, made by
Motorola Inc. and loaded with iTunes
software, can store podcasts as well as
music. Users can transfer songs to the
device from their PC or Macintosh
computers and make calls through
Cingular Wireless.

"It's an iPod shuffle right on your
phone," said Jobs and noted that both
the iPhone and iPod shuffle both
randomly sort music, hold about the
same songs and have display screens.

Apple struck a deal with Cingular for
the new phone, called the Motorola
ROKR E1 Phone, which retails for
$249.99 with a two-year commitment to Cingular. Cingular will not earn
any money from actual music downloads; its only source of revenue will
be from additional contracts it manages to sell. Mobile phones have been
equipped to hold music files for some time now, but Cingular is the first
carrier to strike a deal that allows users to download music directly to
their phones from their computers.

Jobs also introduced a pencil-thin iPod, the iPod Nano which will replace
the iPod Mini. It is one-third the size of the Mini and holds 1,000 songs.
"It's impossibly small," Jobs said at the Moscone Convention Center. "It's
thinner than a No. 2 pencil." The Nano can store music, games, photos
and a calendar. It also has a "screen lock" feature that allows no one
except the user to access content. A 4-gigabyte Nano will retail for $249,
and a 2-gigabyte model will sell for $199. Both versions will be available
in stores this weekend.