Apple has announced that it will launch its new iPhone on 29 June in the United States. The device combines the functionality of a mobile phone with a personal digital assistant and will sell for USD 499 or USD 599, depending on how it is configured. A launch date for Europe and the rest of the world has not been announced.

One of the most interesting features of the iPhone phone is its entirely touch-sensitive interface. Though it has been much anticipated, Apple has come under fire for signing an exclusive deal with AT&T, whereby only AT&T subscribers can use the iPhone. The product was announced last January at MacWorld in San Francisco by the firm's chief executive Steve Jobs.

See the BBC News story here. The presentation by Steve Jobs at MacWorld in January 2007 here (video).