Apple has confirmed the launch of the iTunes Phone and called it the Motorola ROKR.

"You've probably heard about this," Jobs said, a reference to the speculation that has run rampant prior to today's event.

The Motorola ROKR features a colour display for viewing album art, dual built-in stereo speakers and stereo headphones that also serve as a mobile headset with microphone.

Music fans can randomly autofill or manually fill the mobile phone with playlists of their favorite music, audiobooks and Podcasts from their iTunes library via a USB connection.

The Motorola ROKR pauses music automatically when users take a call and offers the ability to listen to music while checking messages or snapping a photo. Songs are transferred through a USB cable and not via a 3G network as expected.

The ROKR can only hold about 100 songs, according to Jobs. "The way we think of this phone is, it's really an iPod shuffle on your phone," he explained. Both devices can shuffle, both can autofill, neither has a click wheel -- but the phone has a display.

In the US the phone will be exclusive to Cingular and in the UK it looks like Carphone Warehouse will get the phone first in mid-September and with O2, Orange, Virgin Mobile, BT Mobile and other top retailers by late September

"The Motorola ROKR represents the ultimate convergence of mobile communications and music," said Ed Zander, chairman and CEO of Motorola. "Fusing iTunes with your always-with-you mobile phone, we're revolutionizing the way the world experiences mobile self-expression and entertainment."

"We've worked closely with Motorola to deliver the world's best music experience on a mobile phone," said Eddy Cue, vice president of iTunes. "We're also thrilled to be working with some of the largest wireless carriers in the world to bring this pioneering phone to market."

Madonna and other musicians are also being tapped to shill the new ROKR in a Motorola advertising campaign set to begin later this week, showing them in a phone booth out in the desert. It will be the first time users of the iTunes store will be able to get downloads of the artists tracks.