Apple still managed to surprise people at this week’s MacWorld Expo, despite many anticipating the announcement of the iPhone.

The company was also expected to launch a new version of the iPod, with a larger screen – and possibly even an innovative control system based on a touch-screen display.

However, crowds at the San Francisco event saw a combination of two devices in a single product, with some additional internet communications features thrown in.

Speaking about the iPhone, Apple’s CEO, Steve Jobs said: “We want to re-invent the phone. And, boy, have we patented it."

In place of the multi-button interface of most mobile phones, the iPhone will allow users to access most of its features by pressing the 3.5in touch-sensitive screen. A row of icons at the bottom of the screen can be used to switch between music, phone, web browsing or email functions.

The control system - called Multitouch - is intelligent enough to ignore accidental taps on the screen, and the unit has built-in sensors that detect when the iPhone is being raised towards the user’s face to make a call. It will then temporarily deactivate the screen controls so the user does not accidentally press any buttons when pressing the phone to their ear.

Other features include a 2-megapixel camera, and a version of Apple’s Safari web browser designed specifically for the iPhone’s 3.5 inch display.

The iPhone will be available in the US in June and will cost $499 with a two-year contract for a model with 4GB of memory, or $599 with 8Gb. However, the iPhone will not be available in Europe until the end of 2007, and no information is currently available about UK pricing or networks.