Apple Computer today introduced the iTunes Phone, a music-playing phone that Apple CEO Steve Jobs is comparing to the company's popular iPod shuffle music player. Jobs made the announcement today (Sep

Apple Computer today introduced the iTunes Phone, a music-playing phone that Apple CEO Steve Jobs is comparing to the company's popular iPod shuffle music player. Jobs made the announcement today (Sept. 7) at a press event in San Francisco.

The phone comes loaded with iTunes software and can hold about 100 songs as well as podcasts. Users can transfer songs form their PC or Macintosh computers via a USB cable. The phone stops playing music when a call is received.

"It's an iPod shuffle right on your phone," said Jobs, who noted that both the iPhone and iPod shuffle both randomly sort music, hold about the same songs and have display screens.

Jobs also introduced a pencil-thin iPod, the company's ubiquitous digital music device. The iPod Nano will replace the iPod Mini. It is one-third the size of the Mini and holds 1,000 songs.

"It's impossibly small," Jobs said at the Moscone Convention Center in San Francisco. "It's thinner than a No. 2 pencil." The Nano can store music, games, photos and a calendar. It also has a "screen lock" feature that allows no one except the user to access content.

A 4-gigabyte Nano will retail for $249, and a 2-gigabyte model will sell for $199. Both versions will be available in stores this weekend, Jobs said.

In addition, the iTunes Music Store is making available Madonna's catalog in digital form for the first time.


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