IPhone 5 and iTunes

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I just bought a iPhone 5 and it's not working with my iTunes. I'm using a MacBook and my iTunes is 10.6.3 and my computer is 10.5.8. How do I upgrade and make my iPhone work?
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If you want to sync it, yes. The other option is to use a combination of these instructions and iTunes Match to put content on the device straight from the iTunes Store, but iTunes Match costs more than the DVD.
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