Apple says iPhone to go on sale June 29

(Adds more details and background)

By Scott Hillis

SAN FRANCISCO, June 3 (Reuters) - Apple Inc. (AAPL.O) will start selling its iPhone on June 29, a debut that will test whether the company's design success with Mac computers and iPod media players can carry over into mobile handsets.

Apple announced the date on Sunday with three television commercials showing off the phone's large touchscreen and ability to watch video, play music and display photos. The ads can also be seen on the company's Web site.

The date was confirmed by a company spokesman.

The iPhone will cost $500 or $600 depending on the amount of memory included and will be sold through the online and physical stores of Apple and AT&T Inc. (T.N), which is the exclusive service provider for the device.

Apple's chief executive, Steve Jobs, unveiled the iPhone in January after months of speculation that the company was working on a mobile phone that would include some features of its popular iPod music and video players.

The company's stock has been sensitive in recent weeks to any rumors about the iPhone's launch.

Last week the shares rose on one media report that the phone would launch on June 20. In mid-May the shares fell after a technology news Web site posted an e-mail purportedly from Apple that claimed the phone would be delayed. Apple said the e-mail was a hoax.

Apple shares rose 7 percent last week and has nearly doubled over the past year.

((Editing by Greg Mahlich; tel San Francisco newsroom +1 415 677 2505; e-mail: scott.hillis@reuters.com)) Keywords: APPLE IPHONE/

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