U.S. regulators approve Apple's iPhone

SAN FRANCISCO (MarketWatch) -- Apple Inc. said Thursday that U.S. regulators have cleared the way for Apple to begin selling its iPhone cell phone in the U.S. next month.
The Federal Communications Commission signaled its approval with a posting on its Web site early Thursday, which sent Apple (AAPL :
Apple Inc
News , chart , profile , more
Last: 109.44+2.10+1.96%8:00pm 05/17/2007Delayed quote data
Add to portfolioAnalyst Create alert
InsiderDiscussFinancials
Sponsored by:
AAPL109.44, +2.10, +2.0%) shares up 2% to $109.44
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.
"Apple is going to reinvent the phone," Jobs said on Jan. 9, after unveiling the phone during a keynote speech at Macworld, an Apple-focused trade show in San Francisco. "After today, nobody is going to look at these [other mobile phones] the same way again."
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.
Several iPhone accessories will also be available in June, including Apple's new, remarkably compact Bluetooth headset. Ben Charny is a MarketWatch reporter based in San Francisco.