Apple Unveils New iPhone; Drops Price of Current Model to $99

Authored by Mark Hefflinger on June 8, 2009 - 11:29am.

San Francisco - Kicking off its annual developers' conference in San Francisco, Apple (NASD: AAPL) on Monday introduced a new model of its popular iPhone, while dropping the price of its current model to as low as $99. The new iPhone 3G S, available in the U.S. June 19, features improved speed and battery life, a 3-megapixel auto-focus camera, video recording and hands-free voice control, as well as a new operating system that adds tools such as cut-and-paste, and the ability to send MMS multimedia text messages.

Other new features include the ability to "tether," or share the iPhone's Internet connection with a laptop, via USB cable or Bluetooth, and a "Find My iPhone" service for Mobile Me subscribers that can remotely locate an iPhone if it is turned on.

The 16GB model will sell for $199 and the 32GB for $299, with a two-year commitment to AT&T.

With the new model, Apple also has reduced the price of its 8 GB iPhone 3G by $100 to $99.

Poll: Will You Upgrade To A New iPhone 3G S?