Apple’s long-awaited iPhone will go on sale on June 29 in America, ending months of speculation about when one of the most eagerly anticipated products would come to market. The device, which combines the functions of phone, media player and PDA, will sell in two versions, costing $499 (£252) for the 4gb version and $599 for the 8gb.

It will be available only on the AT&T network. Apple gave no details about when the iPhone would be released in Europe. American television advertisements show a user demonstrating the phone’s most innovative features, such as the touchscreen, which is used to turn on the phone in a sliding motion and scroll through music files and e-mails. He interrupts watching Pirates of the Caribbean because he fancies some calamari and uses Google Maps to find a seafood restaurant in San Francisco, which he then calls, all in a series of seamless gestures.

Since Apple disclosed details of the iPhone in January, it has been the subject of feverish hype. However, some analysts remain sceptical, pointing out that it is not the only smartphone to use a touchscreen and that it has the potential to eat into Apple’s iPod sales.

The AT&T network is not 3G, which will limit the speed of certain functions, they say, and it remains to be seen whether Apple will open up the iPhone platform to developers wanting to write new applications. Apple has said that it wants to capture 1 per cent of the phone market with the device and has set a goal of selling ten million iPhones by the end of next year – a target that many analysts believe will be reached easily.

Times Recommends

• Minister in talks with Saudis to protect creditors
• Premier Inn hits back in £29-a-room row
• Bankers hit back at 'populist' bonus supertax