Apple on Monday unveiled a new version of its popular iPhone gadget that runs on faster 3G networks and more importantly, sells for much lower prices than its predecessor.
Apple CEO Steve Jobs told the company's annual Worldwide Developers Conference in San Francisco that expanding the iPhone to run on 3G networks was one of several challenges his company wanted to surmount for the device, which hit the market just one year ago.
The announcement of the new 3G iPhone was widely expected before the event, but Jobs did surprise thousands of Apple fans with the price as he confirmed reports that a new 8-gigabyte iPhone will sell for only 199 dollars. That compares to the original 8GB iPhone at 399 dollars.
A new 16 GB 3G iPhone would sell for 299 dollars, Jobs said, adding that the new iPhone is launching on July 11 in 22 countries, and will in available in a total of 70 countries worldwide in the next few months.
Apple, which in recent years has transformed itself from a niche computer company to a consumer electronics maker with best-selling iPod and iPhone devices, apparently wants to cut the price and expand its user base to capitalize on the momentum it has so far generated with the iPhone.
Currently the iPhone is only officially sold in six countries, although many users have managed to "unlocked" the device to work in other markets with compatible networks.
"We've sold the iPhone in six countries so far, but have actually been in use in many more," Jobs told the conference while introducing new features of the 3G iPhone. "Clearly there is demand for the iPhone."
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