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Apple Unveils iTunes-Ready Mobile Phone (UPDATE)

Apple Computer announced Wednesday the iTunes Phone, a mobile phone and iPod music player in one handheld device.

Before a packed crowd of reporters and guests in San Francisco, Apple CEO Steve Jobs showed off the device, developed with cellular phone maker Motorola Inc. Cingular Wireless will be the exclusive carrier, Mr. Jobs said, and phones will be available to purchase beginning Thursday.

The new Motorola ROKR E1 -- weighing 3.77 ounces -- is capped at a maximum storage of 100 songs. Songs can be transferred to the phone from a Macintosh or Windows-based PC and can not be bought online wirelessly.

It has 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. Music fans 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 Motorola ROKR pauses music automatically when users take a call and offers the ability to listen to music while messaging with friends or taking photos.

The new Motorola ROKR with iTunes pre-installed is available for $249.99 with a two-year commitment at Cingular stores in the U.S. and includes stereo headphones and a USB cable.

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