US electronics giant Apple has moved into the lucrative mobile telecoms market after unveiling its new iPhone.
The phone, which will cost between $499 and $599, allows users to download music, TV shows, podcasts and videos from the iTunes store.
Steve Jobs, Apple's chief executive, said: "The iPhone is a revolutionary and magical product that is literally five years ahead of any other mobile phone."
The device incorporates a large touch-screen rather than the conventional buttons used on most other mobiles.
"We are all born with the ultimate pointing device - our fingers - and iPhone uses them to create the most revolutionary user interface since the mouse," Mr Jobs added.
"It works like magic... It's far more accurate than any touch display ever shipped. It ignores unintended touches. It's super-smart."
The iPhone will offer a full touch keyboard for text messaging, a built-in two megapixel camera and a 3.5-inch widescreen display.
It also includes a calendar application that allows calendars to be automatically synced with a PC or Mac.
The iPhone will come with either 4GB or 8GB of storage space and will run on Apple's OS X operating system.
It will be released in the US in June and Europe later this year.
Shares in Apple rose by nearly 8 per cent after the announcement was made.
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