Steve Jobs gave what tech lovers had been craving in an announcement this morning: The iPhone is coming! AT&T’s Cingular Wireless division has teamed up with Apple to make the phone. The new device will ship in June in the U.S., Q4 in Europe, and 2008 in Asia. Two models will be available: a 4GB model starting at $499 with a two year contract, and an 8GB model for $599 with a two-year contract. The phone will have a 3.5 inch touch screen, WiFi, Bluetooth, and a 2 megapixel camera. It will be about as thin as the iPod video and will be palm-shaped. The device will run on OS X, the same operating system that powers the company's Mac computers. It also has Apple's Safari browser for Internet surfing. To the right is an image from the presentation which featured the new iPhone. Shares of the Apple stock are soaring on the announcement.

Apple is currently negotiating with Cisco to purchase the rights to the name "iPhone". Cisco has owned the rights to that name since the mid-1990's, long before Apple started using the "i" in front of its product names. No word on whether any deal will go through, or if Apple will have to name it something else.