The much-hyped iPhone will be able to play YouTube videos when it ships next week in the United States, Apple Inc. announced Wednesday.

About 10,000 YouTube videos will be available for the iPhone's launch, with the remainder of YouTube's catalogue becoming available by the fall, according to Apple's release.

It's the second partnership for Apple and the Google Inc.-owned video sharing website. Apple also announced that, as of Wednesday, its Apple TV video-streaming set-top box is able to play YouTube videos.

Video will be streamed from YouTube to the iPhone using the H.264 format to compress the files to a manageable size, the first time YouTube has moved to the data-encoding format common in mobile devices.

"Now users can enjoy YouTube wherever they are — on their iPhone, on their Mac or on a widescreen TV in their living room with Apple TV," said Apple CEO Steve Jobs in a statement.

The Apple iPhone has generated excitement in the consumer world for its sophisticated design. It will be priced at $499 or $599 US depending on the memory of the model. It features a 3.5-inch touch-sensitive screen, Wi-Fi capability and a similar design to the company's popular iPod media player.

While Apple begins shipping the phone on June 29 in the United States through phone carrier AT&T, no Canadian release date has been announced.