[stevew]

SAN FRANCISCO (Reuters) - Apple Computer Inc. Chief Executive Steve Jobs on Tuesday introduced an eagerly-anticipated Apple-branded mobile phone with a touch-screen that combines features from the company's popular iPod music player.

While Apple watchers were expecting details on an Apple smartphone able to play music, make calls and perform other functions, the announcement at the annual Macworld conference still helped push the company's shares up more than 5 percent.

Jobs did not give immediate details on the pricing of the phone or its availability, but his speech was expected to continue until 11:00 a.m. local time. The phone will use the network of AT&T's cellular unit, Cingular Wireless.

The move also could help Apple bolster its dominant position in the market for portable digital media devices. The iPod now commands more than a 70 percent share of the U.S. market for MP3 players, as the devices are also known.

The new 11.6 millimeter phone includes a 3.5-inch wide touchscreen display with multi-touch support, 2 megapixel camera and 8 gigabytes of storage. It runs Apple's OS X operating system.

Jobs also said another device that allows users to stream movies, music, photos, podcasts and TV shows to their home entertainment systems would ship in February. Dubbed "AppleTV," the 40 gigabyte machine will cost $299, the same price Jobs forecast back in September.

Jobs also said movies from Paramount films would be sold in on Apple's iTunes online music store in addition to titles from Disney.

Apple has sold more than 70 million iPods since they were introduced and consumers have bought more than 2 billion songs for about 99 cents each on iTunes. More than 220 television shows are also available on iTunes.

Apple shares rose $4.30 to $88.77 following the announcement.