The 3G(PS) iPhone Arrives (See The Video From the Stevenote)

Apple announced its new 3G iPhone today. It is much thinner, much faster, and much cheaper than its predecessor. Starting at $199(with a two-year contract), you get an 8 gigabyte device with GPS that works on AT&T’s high-speed 3G network (as opposed to the slower EDGE network all previous iPhones are bound to). A 16 gigabyte version will go for $299. Considering that the current 8 GB iPhones cost $399, that is quite a steal. The battery is supposed to support 300 hours of standby time, 5 to 6 hours of Web browsing, 7 hours of video, and 24 hours of audio. But talk time is cut in half from 10 hours to 5 hours, when using the 3G network. The launch date is July 11.

Jobs claims that the 3G network approaches the speed of WiFi. What is really going to be a game-changer, though, is the higher speed in combination with the GPS chip, which will open up a whole slew of location-aware apps (some of which we’ve already seen). That and all the new iPhone apps that will be built for it by outside developers.

Apple has already sold 6 million iPhones, notes Steve Jobs. This price drop and the new features should put Apple over the 10-million mark without a problem. Here’s a video of Steve Jobs going over all the features from the keynote (taken, appropriately enough, on a cell phone):

And here’s one of the new ad for the 3G phone: