Apple chief executive Steve Jobs kicked off the Macworld expo with a bang, introducing the much-vaunted 'iPhone'.

The specs of the device, rumoured to be on the horizon throughout 2006, lived up to expectations. The iPhone features widescreen video, a unique touch-screen interface, and full Wi-Fi internet capabilities.

"This is a day I have been looking forward to for two and a half years," said Jobs. "We have reinvented the phone."

The iPhone will feature a 3.5in 320 x 480 pixel display that automatically switches to widescreen mode when the device is turned on its side, and quad-band GSM and Edge capabilities.

It also has a 2-megapixel camera, proximity and ambient light sensors, and a 30-pin iPod connector. The touch-screen reacts to multiple finger gestures, allowing for slash and scroll gestures.

However, Jobs stated that the "killer app" in the iPhone is that it will feature a full version of Mac OS X.

"It is not the crippled stuff you find on most phones. This is real desktop-class software," he said.

The software includes the same music and video playing features of the iPod, a photo viewer, Google Maps, the Safari web browser, IMAP and POP3 email access, address book and Apple widget mini-apps such as calendar and weather reports.

Jobs showcased the abilities of the iPhone in a number of live demos that included pulling up a full HTML version of the New York Times website, watching iTunes video files, and even using Google Maps to look up and call the nearest Starbucks. (Jobs asked for 4,000 lattes.)

The device will retail at $499 for a 4GB model, and $599 for an 8GB model, and will ship to the US in June through service provider Cingular. The phone will be available at Apple and Cingular stores.

Availability in Europe is set for the fourth quarter of 2007, according to Jobs, who did not specify which company would provide service for the iPhone in Europe.