The iPhone is Apple's boldest attempt to conquer new technology markets since the company launched the original iPod in October 2001.

The phone, which will cost $500 and be available initially to only AT&T Wireless customers, signifies how strongly Apple believes it needs to diversify from its core Macintosh computer line and turn itself into an all-inclusive media-device company.

Apple unveiled the iPhone in early January. The new touch-screen phone will be able to play music, surf the Internet and take pictures, among other functions.

The iPhone uses a new technology called multitouch to do away with the traditional keyboard found on most phones or personal digital assistants, and replaces it with a screen upon which "buttons" will appear for different functions such as its built-in iPod, phone and Web surfing. It will also have a 3.5-inch diagonal screen and be 11.6 millimeters thick. Apple said that the phone will have a 2-megapixel camera, instant text-messaging capacity, iTunes sync and a visual voice-mail system, which will allow users to read a list of people who called.