Apple Reinvents the Phone With iPhone

After months of rumors and speculation, Apple finally unveiled its iPhone hybrid device during CEO Steve Jobs' keynote appearance at the Consumer Electronics Show in Las Vegas. The reality of the iPhone matches closely with the conjecture that anticipated the announcement: It is a quad-band GSM mobile phone, a widescreen iPod music/video player and Internet communications device all in one, complete with the function-over-form user interface hallmarks that are Apple's signature. As expected, Cingular Wireless will serve as Apple's exclusive carrier partner, and both Apple and Cingular stores will carry the iPhone when it reaches the U.S. market in June 2007; the 4GB model will retail for $499, while the 8GB model will carry a price tag of $599.

From a content standpoint, the most compelling iPhone news is unofficial--by spotlighting the Beatles' "Lovely Rita" during the CES iPhone demo, Jobs implicitly acknowledged that Apple finally secured digital distribution rights to the Fab Four's back catalog. No official announcement on a licensing deal was forthcoming, but music biz insiders confirm an agreement is in place. The two entities already share a long history, most of it tempestuous: Branding conflicts have kept Jobs' Apple in legal battle with the Beatles' Apple Corps for two decades, culminating in mid-2006 when a British judge ruled that iTunes did not violate a 1991 agreement stipulating the Apple Computer could continue doing business under the Apple name as long as the technology maker steered clear of the music industry. Interestingly, Jobs announced Tuesday that his company was officially updating its name from Apple Computer to Apple Inc., although it's unclear what if anything the change portends in regards to its relationship with Apple Corps.


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