CEO Steve Jobs unveils the much-anticipated 3G iPhone; cuts the iPhone price to $200; takes aim at the BlackBerry.

Apple announced on Monday a much faster iPhone that's half the price of the current model.

The news is expected to address one of the biggest complaints about the hugely popular iPhone: That its Internet browsing is too slow. CEO Steve Jobs said the new iPhone, which is based on 3G technology, is 36% faster than top rival Nokia's N95 smartphone.

As Fortune.com first reported, the new 8-gigabyte iPhone will cost $199 and a 16-gigabyte version will cost $299. Jobs says the new iPhone will be available worldwide starting July 11. It will allow up to six hours of Web browsing and five hours of talk time.

Jobs announced the 3G iPhone, which had been rumored for months, at the company's annual World Wide Developers conference in San Francisco.

Apple shares fell 4% after the iPhone announcement, as some investors were left wanting more from the gadget maker. The stock had been up 55% in the past three months on heightened expectations for a radically improved iPhone and the possibility of other product launches.

While the price cut was good news for consumers, U.S. iPhone partner AT&T said it would feel the pinch of having to lay out a subsidy for the new phone. In a press release late Monday, AT&T said the iPhone costs will cut adjusted earnings by about 11 cents this year and next.

To help offset the expected revenue shortfall, AT&T raised the price of its unlimited iPhone data plan by $10 a month. Also, as part of its new business model, Apple will no longer pocket a share of customer fees. However, AT&T will continue to pay Apple as much as 24% of monthly revenue from original iPhone users until their contracts expire.

During the show, Jobs also introduced a slew of new applications for the iPhone, including a wireless system that automatically forwards e-mail to other devices, a friend-finding service called Loopt and mobile blogging software from TypePad.

One lucrative market that Jobs & Co. are looking to crack: working professionals, most of whom now use the BlackBerry, made by Research in Motion.

Jobs kicked off the conference Wednesday by talking about the iPhone for business users. He said that the iPhone now works with Microsoft's Exchange office server systems - a key feature if the iPhone hopes to seize market share from the BlackBerry. Jobs said that 35% of the Fortune 500 has participated in a beta program for business applications for the iPhone.

View: Full Article
News source: CNN

TBH, although I'd love to have one, the iPhone isn't all that impressive feature-wise - even with the new version. They're still playing catch-up to PDA phones that have been out for a year or more running WM and Symbian OS. 3G! A-GPS! ActiveSync! App downloads! Welcome to 2006, Apple!

And Apple still has a ways to go to even do the new features as well as two year old PDA phones. I mean, a business phone with no way to cut and paste? A music phone that lacks stereo bluetooth? A GPS phone with no turn-by-turn directions (and making an app to do it being strictly forbidden by the terms of the SDK)? No voice command/dialing?

The sad part is that all of these features are available in OSX, but aren't ported over to the iPhone, even the new improved one. How hard can it really be?

Add to that the fact that AT&T will new be charging their normal inflated data plan rates ($30-40 on top of the normal voice and text message plan rates), and the appeal of the iPhone 3G really shouldn't be as great as the hype is going to make it.

Of course, none of that is going to stop them from selling as fast as they can make them - people are such total marketing tools (myself included).

I won't buy one until there's a model released for Verizon.

From what I understand AT&T has a 5 year contract, so it'll be another 4 years. And, of course, Verizon will have to start supporting GSM, which should be the case by then anyway as they plan on using it for their 4G solution.

Am I the only one who doesn't find the iPhone appealing? To me it's a case of style over substance.

Nope! I can't stand the damn things either. They're nothing more than an over priced silly-assed fashion accessory.

Form Follows Function (The 3 F's Rule); Job's never heard of this, because he's locked in his own dream world trying to make pretty things for ignorant people.

I like thing that are mission specific, minimalistic, and lightning fast.

Well I never have used an iPhone, so I can't really speak for it's functionality. But from what I have seen, its web browser does appear to be ahead of any other mobile device.

Now, the iPhone's original lack of 3G support was a total deal breaker. I mean, what were they thinking? My XV6700 had 3G support a couple years before the iPhone was even released.

There's still no way I will get an iPhone though. Not just because I don't want one, but because I can't get one. AT&T has absolutely no wireless coverage where I live.

i Don't think its over priced, with all of its neat features, actually i think it gonna be standard mobile for some years, like what happend with there ipod.

I don't know about the USA but in the UK the N95 8GB has more features and free on a lot of tarriffs from different networks. Compared the the iPhone which was £269 + a rubbish rip-off tarriff to make up the rest of he cost of the phone.

Most people I know who want "the best" have got the N95 8GB.

From experience when I had the first iPhone, it's nothing buy a toy. I got bored of it and sold it. I have a BlackBerry Curve now and I wouldn't trade it for the world...

Just from using both products, I believe the BlackBerry is still years ahead. From a user's perspective, they have no idea (unless they look into it) about how the BlackBerry services work. I mean, you get your e-mail, calendar, etc. But there are other things that make these functions work.

Take the BlackBerry Enterprise Server for example. Does Apple have something to compete with this? I doubt it yet. Same with the BlackBerry Internet Service where you can integrate your e-mail, and have the e-mail sent to your device, set up filters, accept calendar meetings and appointments...etc.

Is Apple going to compete with BlackBerry Unite!? http://eu.blackberry.com/eng/services/blackberryunite/

I mean, they're going to have to have something that mimics the BlackBerry services that RIM offers. I just don't see how they can pull this off. They have the money and know-how but I just do not think it's a viable step that they will take. It would take years to implement this service, make sure it works, and perfect it so there is as little down time as possible. Plus they would have to hire a whole support team to troubleshoot issues that customer face. I just do not think they can do it at this point.

I'm buying an iPhone 3G tomorrow. I played around with it at the store today, and there's no resistance left in my body.

I hate Apple. I hate Apple. I hate Apple. I love iPhone.

Damnit! And there goes my promise to never buy an Apple product.

You traitor Danthe!

Yeah man, don't remind me. I feel bad, but I still feel good. If that makes any sense.

My pocket hurts the most.

Update: Got the iPhone now. Next is an iMac. This is the best f*cking toy and tool ever. I love it. Totally love it.
Traitorism.

Yes, Yes, Yes, Yes and Yes... The iPhone 2.0 OS (launched with iPhone 3g, and available for iPhone1) has near complete exchange integration. Push email, calendar, accept meetings and such, all there. I've been moving myself into more of an IT position at my work, instead of just a production technician (it's a composite manufacturing facility) and so far having the phone has been very productive and useful. Meeting requests and email are pushed right to the phone. I only have the classic iPhone, but, I'm not too worried at the moment as I currently don't even have a data plan, just use WiFi everywhere. Wish I had gps though, that'd be neat.

@PM

Me too, which is why after years of using various non ipod mp3 players (creatives, various flash based), the iPod was a god send it terms of minimalistic and non-clunky UI. (Touch wheel IMO is still one of the best designed control schemes I used)