After a series of bragging points and updates on Apple's music business, CEO Steve Jobs unveiled an iTunes-enabled cell phone Wednesday, as well as a new, ever-smaller version of the iPod.

The Motorola ROKR E1 can hold about 100 songs in flash memory, Jobs said. He said it is very much like an iPod Shuffle on a phone, including that it does not have the iconic wheel of most other iPods. However, it also has a color display.

Cingular Wireless will be the exclusive carrier for the phone, which pauses automatically when a call comes in.

It will sell for $249 with a two-year service agreement.

Apple also revamped its iPod offerings, adding the iPod nano, which can hold about 1,000 songs in a 4GB configuration and has a color display. It also allows people to lock their devices with a password, because it has contact and calendar information.

The nano, which comes in two colors, will sell for $249, or for $199 for a 2GB version. Both types use flash memory, rather than a hard drive. It can play for 14 hours on a single charge, Apple said.

Observers noted that the iPod mini has been removed from Apple's Web site.

Other updates from Apple included:

A new release of the iTunes software, version 5.0. It includes a new search bar, the ability to organize in folders -- not just playlists -- and a "Smart Shuffle" feature that lets users set how often certain songs are played in random mode.

The new software also includes parental controls.

iTunes will be the exclusive provider of downloadable audio books for the entire Harry Potter series, and Apple will sell a Potter-branded iPod.

iTunes will also sell Madonna's entire music collection.

The iTunes music store continues to dominate the industry, Jobs said. More than 10 million people have accounts, and the site serves 1.8 million downloads a day. It has 80 percent of the market.

Just about every major cell phone maker has been working to launch a music phone that could compete with the iPod, Apple's popular digital music player.