Ring, ring, it's the iPhone

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Apple CEO Steve Jobs delivered his keynote speech at MacWorld in San Francisco today, and he revealed plans for an oft-discussed product: the iPhone. Jobs said the new product will combine the capabilities of a video iPod, a mobile phone, and a wireless Web device.

"An iPod, a phone, an Internet mobile communicator...these are not three separate devices!" Jobs joked.

Jobs went on to say the device wouldn't have a stylus or a keyboard, which he says takes up an unnecessary 40 percent of a handheld's space. Instead, Apple will employ a stylish, innovative method of entering commands.

"So how are we going to [get this into] a mobile device? Get rid of all the buttons, and just make a giant screen," he told the crowd. "We're going to use the best pointing device in the world--our fingers. We have invented a new technology called multitouch. It works like magic."

The iPhone sports a 3.5-inch screen, with 160ppi resolution, and at 11.6mm, it's thinner than most other smartphones. The device does everything you'd expect a mobile phone to do, including text messaging, and it has a 2 megapixel camera built in. It also downloads and plays videos and music, a la an iPod.

The device runs Mac OSX and connects wirelessly to the Internet thanks to a quadband GSM + EDGE, and it comes equipped with Bluetooth 2.0, instead of the faster 3G data speeds. The iPhone will retail for $499 for the 4GB model and $599 for an 8GB model, and will be available in the US in June. Europe will get the iPhone by the end of the year, and Asia will see it in 2008.

Apple stock was up 5.85, or 6.84 percent, to 91.32 in midday trading. For MacWorld updates, check out CNET's Crave tech blog.

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