Apple demonstrates newest $199 3G iPhone at WWDC

Apple Inc. on Monday (June, 9) unveiled the much-anticipated follow-up to its widely popular iPhone device at the Apple Worldwide Developers Conference in San Francisco. The next generation iPhone, a 3G-enabled device, will be exclusively available through AT&T in the United States.

During his keynote speech at the WWD Conference, Apple CEO Steve Jobs said the new iPhone will run on a high-speed AT&T network using super-fast 3G (third generation) technology, which provides Internet speeds that are twice as fast as the first generation iPhone.

Currently available in 280 U.S. metropolitan areas, AT&T's 3G mobile broadband network will be available in nearly 350 markets by year's end.

Apple and San Antonio, Texas-based AT&T Inc., which is Apple’s exclusive U.S. carrier partner for iPhone, said the brand new, state of the art 3G iPhone, supported by AT&T Inc.'s third-generation mobile broadband network, will hit the market July 11.

"We're offering the most advanced mobile device ever on the nation's most advanced high speed network," says Ralph de la Vega, President and CEO of AT&T Mobility. "We think iPhone 3G is an amazing mobile device and our customers are going to love using iPhone 3G to make calls, send e-mails and surf the Web even faster."

The new device will have several significant enhancements, including 3G broadband wireless connectivity, Business-class capabilities and enhanced capabilities for the developers.

According to the America's leading wireless company AT&T’s Website, the new iPhone’s 3G broadband wireless connectivity gives customers a home broadband-like speed experience when surfing the Internet, sharing files, and using media-rich Web applications, while its Business-class capabilities, including e-mail, viewed on a large, touch-screen device make the device capable of meeting the needs of companies of all sizes. The new device also includes the ability for developers, including AT&T, to create customized consumer and business applications using the Apple software developer's kit (SDK).

What makes the new model more attractive is apparently its reduced price. The iPod/Mac maker on Monday also revealed that it has scrapped its pricing plan for its newer model that works over faster wireless networks.

An 8-gigabyte version with the full-fledged new features will be available at a price of $199 with a two-year contract with AT&T, which is just half the price of the existing iPhone ($399). The 16-gigabyte model will cost $299, the Cupertino, California -based company said.

CEO Jobs said that in a survey Apple found that mostly people hadn't bought iPhones because of its hefty price. In order to boost sales of iPhone handset, "We need to make iPhone more affordable," Mr. Jobs said.

AT&T, one of the world's largest telecommunications companies, said the unlimited iPhone 3G data plans for consumers will be available for $30 a month, in addition to voice plans starting at $39.99 a month, while unlimited 3G data plans for business users will be available for $45 a month, in addition to a voice plan.

"Combine our high-performance 3G broadband wireless network, the new iPhone's business-class capabilities and a starting price of $199, and I expect that we will continue to increase revenue per user and attract customers who spend the most on wireless. The device is built, and priced, to sell," said de la Vega.

Apple said it has so far sold six million iPhones worldwide, adding that though the product is currently available in only six countries, it will be available in 70 countries in the coming months.

The new versions of iPhone will be sold in more than 2,200 AT&T retail stores and kiosks, as well as direct business sales channels.

AT&T spokesman Michael Coe said that owners of the current iPhone who intends to buy new model and sign up for a new AT&T contract would not bear any penalties to terminate their current contract. Moreover, anyone who bought an iPhone in any company store after May 26 can return it before August 1 for full credit against a new one (less a 10% restocking fee).