Apple's 'iPhone' is coming
Jobs announces 'revolutionary' device, confirms iTunes selling of Paramount films.
By Owen Thomas, Business 2.0 writer
January 9 2007: 1:48 PM EST
SAN FRANCISCO (CNNMoney.com) -- Apple announced the long-awaited "iPhone" at its annual Macworld expo Tuesday.
Company chairman Steve Jobs also disclosed that Apple (up $5.33 to $90.80, Charts)'s iTunes will sell Paramount films, and that the AppleTV device will be available beginning in February.
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Apple Chairman Steve Jobs showing the iPhone at the Macworld expo in San Francisco.
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In a move that could strike at BlackBerry maker Research in Motion (down $9.17 to $132.99, Charts), Apple will offer free push e-mail from Yahoo (down $0.37 to $27.55, Charts) on the phone device. RIM currently charges for its e-mail service.
Apple shares ralled $5.05, or nearly 6 percent, to $90.52 on the announcement.
Jobs called the iPhone is a "revolutionary mobile phone" that will feature an iPod, phone and "Internet communicator."
The phone is rectangular, with the entire front surface a touch screen. The device is run entirely by touch. It runs the Mac OS X, scaled down to a cell phone.
"This is a day I've been looking forward to for two-and-a-half years," Jobs told the crowd at San Francisco's Moscone Center.
He especially touted the device's Internet browsing capabilities.
"It's bad out there today," says Jobs of mobile Web browsers. "It's a real revolution to bring real Web browsing to a phone."
As a example, Jobs called up the New York Times Web site. The full page displayed, not a special version or oddly formatted page that most smartphones show.
He then called up Google Maps to find a nearby Starbucks. He actually prank called it and ordered "4,000 lattes to go."
Jobs says the "killer app is making calls." The iPhone will operate on the GSM protocol, but will not have third-generation broadband initially. It will sync with the Mac's Address Book application.
Jobs played a voicemail on the phone from former Vice President Al Gore, a member of the company's board, congratulating the Apple chairman on the new device.
The product formerly known as iTV will now be called Apple TV. This device has a wireless connection for up to five computers to stream or download movies and tv shows. It can connect to a large-screen hi-def television screen. The 40 gigabytes of memory can store 50 hours of video.
Apple TV will ship next month, and will sell for $299. Jobs said the company is accepting orders.
Jobs announced that there have been 2 billion iTunes sold for iPods. He said it took 3 years to sell the first billion and ten months to sell the second billion. He says 1.3 million movies have been sold for video iPods.
There was some question as to whether Apple would be able to use the iPhone name for the device. But Cisco Systems (down $0.19 to $28.44, Charts), which owns the rights to the iPhone name, said Tuesday it expects to reach agreement with Apple later Tuesday on using the name for its device. Getbig's own Special Ed and 240 have already purchased every other conceivable iphone domain name.
