Finally, Apple answers call for iPhone

In one of the most anticipated gadget announcements in recent years, Apple Computer at Macworld on Tuesday introduced the "iPhone," a mobile device that CEO Steve Jobs promised will reinvent the phone.

The Mac OS X-based iPhone is most akin to an iPod in design, but allows users to listen to music, make phone calls, send text messages and e-mail, surf the Web, and take and upload photos, all using a wide touch screen and a single button. Apple plans to make the device available in the United States in June, with a 4GB model going for $499 with a two-year service contract, and an 8GB model with the same contract for $599.

The iPhone was announced during a two-hour keynote in which Jobs also announced the expected Apple TV, previously known by its code name "iTV," as well as a name change for the company.
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