Steve Jobs has unveiled the 3G iPhone at this year's WWDC, citing the technology as the products's next challenge, with it launching on July 11th.
Saying that the firm had learnt a lot from the first version of the phone, Jobs said that the firm would be seeking to resolve the biggest problem it faced: its cost.
Jobs revealed that the bottom 8GB device would cost £99 at most – a price point shared around the world – with the 16GB version costing £159 and $399 for a white version.
O2 later revealed that the 8GB device would be £99 on its £30 and £35 a month tariffs and free on its £45 and £75 tariffs. The 16GB version will cost £159 on its £30 and £35 tariffs, £59 on £45 and free on its £75 a month tariff.
Speaking at the event about the success of the first iPhone, he said: "In that first year we sold 6m iPhones since we ran out some weeks ago. We did figure out what our next challenges are... the next mountain we have to climb to go to the next level."
Jobs added that the device's 3G speeds where "36 per cent faster than the Nokia N95 and the Treo 750."
He added that the firm has been working hard on improving the device's battery life. Admitting that its battery life would be less than the 2G version, Jobs was keen to point out that according to the firm, its battery life was better than similar models.
Jobs also unveiled that the new device would come with GPS built in.
The 3G iPhone will be launching in 70 countries over the next couple of months.