Apple Confirms Release of Long-Awaited iTunes Phone

"We've worked closely with Motorola to deliver the world's best music experience on a mobile phone," said Steve Jobs, Apple's CEO. "We're also thrilled to be working with Cingular, the largest wireless carrier in the US, to bring this pioneering phone to market."

Ovum analyst Roger Entner told MacNewsWorld that the long-awaited iPod phone is just about what he expected it to be. "The phone really brings Apple's superior software design into the mobile world," he said. "The one little disappointment is that you can't download the songs over the air."

Musical Features

The Motorola Rokr allows users to transfer up to 100 of their favorite songs from the iTunes jukebox on their Mac or PC to their mobile phone. The phone features menus, navigation and playback, and the ability to switch from phone to music and back again with the push of a dedicated music key.

The Rokr features a color display for viewing album art and features built-in dual-stereo speakers, as well as stereo headphones that also serve as a mobile headset with microphone.

Users can randomly autofill or manually fill the mobile phone with playlists from their favorite music, audiobooks and Podcasts from their iTunes library via a USB connection. The phone pauses music automatically when users take a call and offers the ability to listen to music while messaging with friends or snapping a photo.

"The Rokr brings music to the mobile phone in a way unlike any other, with the unrivaled ease of use that has become the signature of iTunes," said Ed Zander, chairman and CEO of Motorola. "We predict that the Rokr is going to be a hit this holiday season."

Cutting Into iPod

The new Motorola Rokr with iTunes pre-installed is available for US$249.99 with a two-year commitment at all Cingular stores nationwide. With such a hefty price tag, will the iTunes phone cut into iPod sales? Do consumers really need both? Entner said he doesn't believe the new mobile gadget will cannibalize iPod sales.

"You can have an iPod and the iPod phone at the same time," Entner said. "If you want to listen to a lot of music you use the iPod. If you want to just listen to a little bit of music you leave the iPod at home and you listen to music on your phone."

It's an iDay

Apple today also introduced the iPod nano, a full-featured iPod that holds 1,000 songs or 25,000 photos. Nano is thinner than a standard #2 pencil and weighs only 1.5 ounces. The new iPod model features a lightweight design with a color screen, Apple's patent pending Click Wheel, and one-handed navigation. Prices start at $199.

"IPod nano is the biggest revolution since the original iPod," Jobs said. "iPod nano is a full-featured iPod in an impossibly small size, and it's going to change the rules for the entire portable music market."

Apple also introduced iTunes 5. The latest version includes a new search bar, the ability to organize playlists into folders, and Smart Shuffle, which lets users change the randomness of shuffled songs. ITunes 5 also gives Windows users the ability to automatically sync contacts and calendars from Outlook onto their iPods and features parental controls.

"ITunes is widely regarded as the best jukebox, with the world's most popular online music store built right in," Jobs said. "We are constantly improving iTunes with new features like podcasting and better searching because we love music ourselves and want to surprise and delight music fans around the world."

Bushel of Announcements

In other news, Apple also announced there are more than 1,000 accessories now available for the iPod and officially welcomed the Harry Potter audiobook series to its Tunes music store.

Apple also said it has teamed up with Acura, Audi, Honda, and Volkswagen to deliver iPod integration with their car stereos for 2006 model lines. The integration allows users to enjoy the sound of their car's stereo system as they listen to their iTunes library.

Wrapping up the day's announcements, Apple proudly announced that the iTunes Music Store is the number one digital music service in the United Kingdom, with 80 percent market share of digital sales, according to the Official Charts Company.