During his keynote, Steve Jobs announced that the sales of Apple’s ultimate gadget have reached 4 million units since its initial launch on June 29.

Unfortunately, Apple’s boss didn’t say how many of these phones were sold in Europe and the company didn’t release any estimates about the European sales.

Apple's first phone, launched at the end of June, represented about 19.5 percent of the U.S. smart phone market in its first 90 days, Jobs told the attendees.

The iPhone was introduced in UK and Germany on November 9 and in France on November 29, but so far only Orange, the French distributor, announced that 30,000 units had been sold in just five days from the launch. Apple hopes to sell 10 million units until the end of 2008.

During this year, Apple will launch its iPhone on the Asian market. Last year in December, there were rumors that Steve Jobs has discussed the launch of iPhone in Japan with DoCoMo President Masao Nakamura.

There were also reports that Apple’s officials have negotiating with China Mobile the launch of iPhone in China.

Also, Jobs announced announced a free software update for the iPhone, dubbed iPhone 1.1.3, that allows users to automatically find their location using the redesigned Maps application, text message multiple people in one message, create Web Clips for their favorite websites, customize their home screen, and watch movies rented from the new iTunes Movie Rentals right on their iPhone.

“iPhone doesn’t stand still—we’re making it better and better all the time,” said Steve Jobs, Apple’s CEO. “We’ve delighted millions of users with this revolutionary and magical product and it’s great to share these improvements with them.”

Of course, the iPhone 1.1.3 update makes it impossible to use unofficial third-party applications and it appears that all currently available unofficial unlock methods for the iPhone do not work with this update.

However, Jobs’ address was seen by analysts as another step in Apple's ultimate goal to dominate the digital living room with an ecosystem of computers and devices that allow users to seamlessly stream movies music and other content from one screen to another.

The investors were unimpressed with the new products. Apple's shares had risen 3 per cent before the announcement but ended the day over 5 per cent lower.