Report: Jobs ecstatic over iPhone

Steve Jobs, of all people, has been letting the cat out of the bag about the iPhone, Apple's much-rumored music phone.

So says a report on the Apple Insider Web site, claiming that Jobs has been so excited about the music phone that he can't stop babbling about it to his personal acquaintances, a rare string of utterances from the notoriously secret Apple chief.

The report said that Jobs has commissioned the release of cell phone prototypes to at least two potential manufacturing partners in recent months, with current designs conforming to Apple's integrated iPod-iTunes model. It also said the device will turn up earlier than some people may be expecting, in the form of a "big bang" introduction that will catch even some insiders off guard.

Apple still must determine if it's willing to let an iPhone cannibalize sales of its popular, flash-based Nano players. In a research note in May, PiperJaffray analyst Gene Munster wrote about such a concern.

"While we continue to believe there is a high chance that Apple will launch an iPhone in the next 12 months, the company says that the right path for Apple is to continue to pursue devices with one primary feature and not focus on multiple functions in one device," Munster said.

Jobs surprised some insiders when he gave his keynote at Apple's Worldwide Developers Conference in San Francisco last week without any new iPod-related product announcements.

Zune to sell for $299, keyboard maker includes dock

The buzz around Zune, Microsoft's hoped-for iPod killer, continues to grow. Tech site Twice reported that the Zune player will go on sale in the fall for $299 and will come in three colors, including black and white. Today, keyboard maker Razer touted a forthcoming keyboard that will include a Zune docking station. The Razer Pro|Type Multimedia Keyboard, proclaimed the "the world's most intelligent keyboard" by Razer, will reportedly be released in November in both black and white, and will also be compatible with the iPod. The keyboard will have line-out plugs for audio peripherals and a couple of USB ports as well.

eMusic launches in UK

eMusic, which has quietly climbed into second place among digital download stores, launched e beta version of its service in the UK today, hoping its DRM-free downloads will appeal to music fans there despite its indie-centric catalog of 1.4 million songs. The service launched with an offer for a free two-week trial and 25 free downloads. eMusic sells songs in the MP3 format, which means that, unlike other subscription-based services like Rhapsody and Napster, users are not renting the music but actually purchasing it. Although it trails far behind iTunes, eMusic now ranks second among all digital download services in terms of market share, according to June 2006 data from NPD Group. The UK version of eMusic charges 40 song downloads per month for £8.99 ($17), £11.99 ($22.65) for 65 downloads, and £14.99 ($28.30) for 90 downloads.

AOL Music snags Paris Hilton album exclusive preview

Paris Hilton has found a digital home. AOL Music will be the exclusive preview home for Paris, the upcoming album from the hotel heiress and paparazzi magnet. The album won't hit stores until August 22, but will be available on-demand exclusively at AOL Music until then. The exclusive preview also includes an interview conducted over AOL Instant Messenger. The project is being released through Hilton's Heiress Records, a subdivision of Warner Bros. Records.

"I'm really proud of my record and the work I put into it," Hilton said in a statement. "I'm excited AOL Music is debuting Paris online, so people can finally hear my entire album for themselves."