Jobs unveils 3G, $199 iPhone

Apple Monday unveiled a second-generation iPhone that offers access to faster 3G networks, more features and a lower price. The new phone, called the iPhone 3G, is similar in design to the first iPhone, but features built-in GPS, a black backside, and a revamped headphone jack.

The new iPhone 3G, which is also 0.7mm thicker than the old one, will be priced at $199 for the 8GB model, $299 for a 16GB model. It will be on sale on July 11.

[ Special report: IT’s guide to the iPhone ]

The new iPhone had been predicted for weeks by analysts and those who keep close tabs on Apple’s plans. Apple fans also kept the rumor mill humming in the days leading up Monday’s announcement.

By allowing access to 3G networks, the new phone can load a Web page in about 21 seconds, just 4 seconds lower than when using Wi-Fi and almost three times faster than using AT&T’s slower EDGE network, Jobs said during his keynote address at the company’s Worldwide Developers Conference (WWDC) in San Francisco.

The iPhone 3G offers standby time of 300 hours, talk time of five hours over a 3G network, 10 hours of talk time on an EDGE network, and between five and six hours of Web browsing time.

That wasn’t the only news: Jobs also announced a new version of the company’s operating system, Mac OS X 10.6. Details about the OS were expected to be revealed later Monday.

Dressed in his now-traditional black turtleneck sweater and blue jeans, Jobs started off his address touting the software that’s designed to expand the features and functions available on the iPhone.

iPhone 2.0 consists of three main parts: enterprise integration, the iPhone SDK, and new features that will be enabled by a firmware update. The SDK, he said, has been downloaded some 250,000 times, and 25,000 beta testers — including the U.S. Army — helped test out various features.

iPhone 2.0 will be released early next month and is free for current iPhone owners. Those who have the iPod Touch, which offers most of the same features sans the phone, will pay $9.99 for the firmware update.

Pointing to enterprise interest in the iPhone, Jobs said new features include Microsoft Exchange support out of the box, providing push e-mail, contacts, and calendars as well auto-discovery and remote wipe. The phone, once updated, also offers location-based services that could, for instance, be used to allow a person to find the people in their address book based on location.

Showcasing the phone’s accelerometer, which is used to change the display as the phone is rotated, Jobs demonstrated a Sega game, Super Monkey Ball. The game will sell for $9.99 through Apple’s new App Store when its released.

eBay’s Ken Sun then demonstrated how eBay auctions can be integrated with the iPhone using a free application that will be released for the device. It allows an iPhone owner to use the phone to bid on items much as you would using a computer. That app, called Auctions, will be free when it is released.

Other apps demoed during Jobs’s speech include one that allows photo blogging from the iPhone and an Associated Press application called Mobile News Network, which uses location-based services to connect to local AP news sites. It also allows iPhone owners to send breaking news information and pictures to the AP directly from the phone.

Another app, called Band, allows a person to record and create music on the iPhone; MLB.com has developed an application that provides real-time video highlights of games in progress; and Modality Inc. founder S. Mark Williams demoed a way med students can use the iPhone as a study tool.

Although pre-show attention focused on the prospect of new hardware, Apple’s focus — not surprising, given the venue — was on how easy the SDK is to use and how quickly applications for the iPhone can be built. Some of those demonstrated Monday were put together in just a few days.

Scott Forstall, senior vice president of iPhone software at Apple, talked up Push Notification Services, which allow applications to receive alerts without actually running, saving battery life on the iPhone. That feature won’t be available until September.

Jobs also stressed a variety of new functions, including parental controls, native support for the Microsoft Office suite, bulk delete and move in messaging, and the ability to save images from e-mail.

Turning his attention to the App Store, Jobs said developers will be able to distribute applications they create through the store, which will have an area enterprises can use to distribute their own applications to employees.

After that, Apple’s Phil Schiller, senior vice president of worldwide marketing, talked about a new feature called Mobile Me, which can be used to sync addresses, photos, and other data wirelessly with the iPhone and integrates Apple’s iDisk. Mobile Me replaces Apple’s .Mac service and will cost the same, $99 a year. It will offer 20GB of storage space and is due to be rolled out next month;.

Get the latest from the conference, as well as a look back at Computerworld ‘s recent coverage of the iPhone, online.