New iphone5 ! new itunes??

just received my new iphone and when i connect it to my mac it says cannot be usedas it needs itunes version 10.7, however when i go on to itunes updates it says i am running the latest software which is 10.6.3
HELP

If you want to get iTunes 10.7, then you'll need to upgrade your Mac to Snow Leopard.  It shows here that you are still running Leopard rather than Snow Leopard and you can't get iTunes 10.7 or 11 with Leopard.
If your Mac is an Intel based Mac and not a Power PC, then you should be able to upgrade.  Call Apple and ask them to send you a Snow Leopard CD and they should either do this for free or for a small fee.  If you have a Power PC, then you can't upgrade - it needs an Intel based Mac, so you will probably have to invest in a new Mac at some stage.
It clearly stated these requirements on both the Apple website and on the side of the iPhone 5 box, that you need an Intel based Mac running no less than Snow Leopard - 10.6 to be able to use the iPhone 5.  Perhpas you should have read the minimum requirements before you purchased?
If you can't upgrade, then you are looking at purchasing a new Mac or sending your iPhone back.

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