Between pop star appearances and Steve Jobs’ usual antics, Apple unveiled the long-awaited iTunes-enabled ROKR on Wednesday—then wowed analysts and journalists with an iPod almost half the size of the mini model it’s replacing.

The ROKR model mobile phone, developed jointly with Motorola, has iTunes software so it can download up to 100 audio tracks from the Apple service bearing the same name. The phone also has a camera that can take videos.

The new iPod nano can hold 1,000 songs in its 4-gigabyte (GB) version for $249, or 500 in its 2-GB version for $199. The device is supposed to be thinner than a No. 2 pencil. The nano features a color screen and can display up to 25,000 photos.

The nano will replace the iPod Mini. It is about one-third the size of a Motorola Razr phone and 62 percent smaller than the iPod Mini. The nano weighs 1.5 ounces, or almost as much as eight quarters. It comes in both black and white models, and will begin shipping immediately. 

Though there had been much anticipation for the ROKR, which Motorola and Apple jointly announced last summer, the iPod nano was considered the big star of the day.

“I think the ROKR was a non-event today,” said Piper Jaffray analyst Gene Munster. “The nano is a home run. Nothing else is going to come close to the nano in at least the next six months. Apple basically put a lock on the market for the next year.”

“iPod nano is the biggest revolution since the original iPod,” said Apple CEO Steve Jobs. “iPod nano is a full-featured iPod in an impossibly small size, and it’s going to change the rules for the entire portable music industry.”

Apple shares closed down $0.12 to $48.68 on Wednesday.

The ROKR still will have its fans, said Mr. Munster. It could represent a large, untapped avenue of growth for Apple. An estimated 774 million wireless phones are expected to be sold globally by the end of 2005, compared to the estimated sale of 57 million MP3 players.

“Apple’s foray into mobile music is going to be an important test for the whole category of rich-media convergence on mobile phones, not to mention a test of just how far the iPod brand can be extended,” said Mike McGuire, research director at Gartner.

“The case for making music ‘mobile’ was made by the Sony Walkman and was underscored by the iPod’s recent success,” Mr. McGuire added. “How well Apple and Motorola can do at convincing consumers that the mobile phone is actually a compelling music-listening device, while reserving its primary role as a communications device, will be an important test for the whole class of products.”

Analysts expect 50,000 of the ROKR phones to be sold this quarter, and another 300,000 next quarter.

Music Partners

Like the iPod Shuffle, the ROKR can contain 100 tracks. “It’s an iPod Shuffle right on your phone,” said Mr. Jobs. The device also has a fast-access button so users can push a button to receive music right away.

The device features a USB cable connection to link to a PC or Mac. Users can drag music files from the candy bar-style phone to their computers or do an AutoFill, as with the iPod Shuffle, to load the device automatically.

The ROKR sells for $249.99, with a two-year contract from Cingular.

“We are getting ready to reinvent mobile music,” added Ron Garriques, president of Motorola’s mobile devices division. He later introduced a TV ad featuring Madonna, Biggie Smalls, and other artists.

Cingular will be the exclusive U.S. carrier. Cingular COO Ralph de la Vega said the company will begin selling the phone immediately.

“We were the first ones with our Cingular Sounds products to bring artists like Coldplay [to phone audio downloads],” said Mr. de la Vega. Cingular has 51 million customers in the United States.

Mr. de la Vega didn’t specify a battery life for the ROKR, but said he was able to play music and make several calls on a flight from Atlanta to San Francisco, and the phone still had power. The audience reacted skeptically.

Cingular plans to promote the ads in TV commercials (including Spanish-language ads), as well as on billboards.

The ROKR includes a color display for viewing album art. It also boasts dual-stereo speakers and stereo headphones.

Car Talk

Apple also said it was teaming with Acura, Audi, Honda, and Volkswagen to deliver iPod connectivity through the stereos in their 2006 model lines.

Mr. Jobs predicted that in 2006, 30 percent of all cars in the U.S. will have iPod connectivity options.

Fifteen car companies now offer iPod integration, and Apple predicts that more than 5 million cars will ship with iPod support in the U.S. in 2006.

Celebrity Backing

The Apple announcement came accompanied by some star power.

Kanye West, the one person in the room more charismatic than Mr. Jobs, performed two songs at the rollout.

Classical musician Yo Yo Ma was sitting in the front row. Mr. Jobs also called Madonna in London through his computer via a videophone connection during the presentation.

iTunes now will be selling the pop diva’s music online. Madonna’s music was not available as a legal digital download in the past.

“I got tired of not being able to download my own music,” she said, as a view of the ThamesRiver appeared in the background.

More iTunes News

Apple also announced that digital audio versions of J.K. Rowling’s Harry Potter books will be available exclusively through Apple’s iTunes Music Store. That will make for some long phone calls if any ROKR customers download one of those to their phones.

In addition, Apple rolled out version 5 of the iTunes Music Store. iTunes 5 includes a new search bar to make it easier to search for songs. A Smart Shuffle feature lets users change the randomness of their shuffled songs. And Windows users can now automatically sync their contacts and calendars from Outlook.

The iTunes catalog now tops 2 million songs, 15,000 podcasts, and 10,000 audiobooks. iTunes users now have 7 million podcast subscriptions, according to Apple.

Apple continues to dominate the digital music industry. Music sold through iTunes now constitutes 82 percent of legal audio downloads in the U.S., while the iPod accounts for 74 percent of all MP3 players.