Next generation iPhone launched

The next generation of mobile from Apple - the iPhone 3G - has been revealed to expectant audiences at the World Wide Developers' Conference in San Francisco.

Initial reaction to the product was warm, but many of the technical innovations had been widely expected.

The device's 3G capability had been rumoured, along with a new Global Position System (GPS), allowing users to track their movements.

For buyers it was the price that is likely to prove most attractive.

While the first generation of iPhones were priced at $599 (£300), falling to $399 (£200), the basic (eight gigabyte) version of the new model will go on sale for just $199 (£100).

A 16 gig model will be available to American consumers when the new device goes on sale on July 11th, priced $299 (£150).

Apple chief executive Steve Jobs admitted price was the number one reason the previous incarnation of the product had perhaps failed to meet expectations.

With this in mind, Apple has significantly lowered the price in an attempt to expand market share.

However, the phone will remain exclusive to the 02 network when it is released in the UK – causing some buyers to complain of the negative price connotations of the monopoly.

Apple also announced improvements in download speeds and other technical abilities.

Mr Jobs confirmed there are to be 300 hours of standby time, five hours of 3G talk time, five to six hours of browsing, seven hours of video and 24 hours of audio power.

The new device is expected to be launched in Europe in November.