Apple introduced the new iPhone 3G today, which keeps all of the features of the current iPhone, while adding 3G networking (with speeds twice as fast as the current iPhone), built-in GPS, and iPhone 2.0 software which includes support for Microsoft Exchange ActiveSync, and runs hundreds of third party applications already developed for the iPhone via Apple's iPhone SDK. The iPhone 3G will be priced at $199 for the 8GB model, and $299 for the 16GB model. Both models will be available on July 11th in 22 countries, including the U.S., and in more than 70 countries later this year.

“Just one year after launching the iPhone, we’re launching the new iPhone 3G that is twice as fast at half the price,” said Steve Jobs, Apple’s CEO. “ iPhone 3G supports Microsoft Exchange ActiveSync right out of the box, runs the incredible third party apps created with the iPhone SDK, and will be available in more than 70 countries around the world this year.”

iPhone 3G gives users faster Internet access and faster email over the cellular network, using quad-band GSM and tri-band HSDPA for voice and data connectivity. It also supports Wi-Fi, 3G and EDGE networks, automatically switching between them to ensure the fastest download speed possible. The new device also allows simultaneous voice and data communications, so you can browse the web, get map directions, or check your email while you are on a call. Previously, this was only able to be done while using the phone's Wi-Fi connection.

iPhone 3G also includes the new App Store from Apple, offering iPhone users a variety of native applications, which they can download directly to their phones over the cellular network and Wi-Fi. Application prices will vary, but there will be a number of free applications availablae as well when the App Store opens. The App Store will be available in 62 countries at launch.

Other features that will be available with the iPhone 2.0 software will be the ability to do real-time mapping and tracking with GPS technology, mass moving and deleting of multiple email messages, saving of images from a Web page or e-mail, and a new search feature for contacts. Battery time for iPhone 3G comes in at 10 hours of talk time on 2G networks and 5 hours using 3G, up to 5 to 6 hours of web browsing, up to 7 hours for video playback and up to 24 hours for audio playback.

iPhone 3G will be available in the US on July 11th in both Apple and AT&T’s retail stores and requires a new two year contract with AT&T for qualifying customers. The iPhone 2.0 software will be available on July 11th as a free software update via iTunes 7.7 or later for all iPhone customers, and will cost $9.95 for all iPod Touch customers.

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