Apple says iPhone to support Microsoft Exchange

CUPERTINO, California (Reuters) - Apple Inc said on Thursday that it would start supporting Microsoft Corp's Exchange product for corporate email, opening a potential new market for the popular iPhone.

Phil Schiller, head of worldwide marketing for the maker of the iPhone, iPod and Mac line of computers, made the announcement at Apple's headquarters.

"The iPhone can now work directly with the Exchange server," Schiller said, adding that it would enable corporate e-mail, contacts and calendars.

(Reporting by Scott Hillis in Cupertino and Duncan Martell in San Francisco, editing by Leslie Gevirtz)