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Apple Computer Inc. (AAPL) has teamed up with Cingular, the nation's largest cellular phone carrier, to offer a new wireless phone that Steven P. Jobs, Apple's chief, says will lead to a new snythesis of communications, video, music and computing.

According to this NYTimes.com article, Apple had set the goal of taking 1 percent of the world market for cell phones, or 10 million phones per year, by the end of 2008. In keeping with that and other goals that will take them from a computer maker into other markets, proven by their domination of the world of digital music, Jobs announced that Apple would drop the "computer" from its name now becoming Apple Inc. 

Signaling that Wall Street is excited about their future as well stock prices rose more than 7 percent after the announcement. In comparison, competing companies in the wireless market, Palm Inc. (PALM) and Research in Motion (RIMM), dropped more than 5 percent. 

Jobs defended the high price of the new phone, called the iPhone, which can run as high as $599, by explaining that it was different from ever cheaper smartphones running $200 or lower by having one mechanical button with a display that becomes both keyboard and control panel rather than "small plastic keyboards"  on current smartphones.

The phones will also offer special applications from Google (GOOG) and Yahoo (YHOO) including receiving mail and a custom version of Google Maps.

Don't confuse the iPhone name with that of Cisco Systems (CSCO) Wi-Fi-based phone with the same name. Jobs is negotiating with Cisco over the trademark, of which both companies lay claim to.