The new iPhones look similar to the first generation, but have a black rather than silver back. They will be launched in 22 countries including the UK on 11 July.

"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 chief executive.

The first incarnation of the iPhone didn't have 3G technology built in as the chipset required would be too power-hungry, Apple said at the time.

However, this problem seems to have been solved, enabling the new iPhones to move off EDGE networks onto the faster 3G ones.

EDGE networks only cover around a third of the UK's landmass whereas 3G is much more prevalent, meaning the new iPhones should be able to get online quite easily when the owner is out and about.

There will also be GPS (global positioning system) features in the 3G iPhone, and Apple claims the battery life will be 300 hours on standby, or five to six hours of web browsing.

The announcement of a 3G iPhone hasn't come as much of a surprise to industry-watchers, who had been predicting one since the first version was launched.

New pricing systems had been rumoured, with network operators bearing more of the burden in order to make the devices more attractive to buyers.

The US prices will be $199 (about £100) for the 8GB version and $299 (about £150) for the 16GB version. When it first launched the 8GB model was $599 (about £300) and it currently sells for $399 (about £200).

When it first launched in the UK, the 8GB version cost £269.

The 8GB version of the 3G iPhone will come free on some contracts, though for the two lowest-priced monthly deals it will cost £99.

The 16GB version will be £159 on the £30- and £35-per month contracts and £59 on the £45 per month contract, and free with the £75 per month deal.

Rob Barnes, head of broadband and mobiles at Moneysupermarket.com, said that the new iPhone looks set to dominate the UK market.

"When it's launched in the UK, I can see no reason for anybody to consider buying any other phone," he said.

A number of other announcements about software programs developed for the iPhone took a back seat to the 3G announcement, which Jobs left until the end of his speech.

The announcement was made at Apple's WorldWide Developer's Conference in San Francisco, and accompanied by the frenzied applauding, whooping and shouting now synonymous with Apple events.

www.apple.com/iphone

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