“The big news is $399 to $199,” CEO Steve Jobs said of sharp price-cuts Apple is making on its iPhone 3G.

Summary

Eight-gigabyte 3G iPhone to be priced at $199

 199

 16-gigabyte 3G iPhone at $299

16_gig

3G iPhone features:

    Jobs calls it iPhone 3G. Offers two to four times faster speeds that existing models working on so-called 2.5G “Edge” networks, he says. The phone offers GPS – Global Positioning Services for real-time location tracking on one’s iPhone. Same 3.5 inch display. Jobs says it is thinner at the edges and has “dramatically improved audio” Promises five hours of 3G talk time. Five to six hours of Web browsing. Video viewing can run seven hours. In the first year of sales, six million of first-generation iPhones have been sold, Jobs says. The new phone will be available in 70 countries over the next few months — in 29 European countries, 15 Latin American countries and 8 in the Asia Pacific, not including China. price: $199 for 8GB ; $299 for 16 GB Available July 11, in more than 20 countries, with 70 by the end of the year, Jobs says. “We are going to be in 70 countries, this year,” he said.

A side-by-side demonstration of faster Web download speeds of iPhone 3G devives versus existing iPhone.

Faster_downloads

Promised improvements in battery life for selected functions on iPhone 3G: 

 Battery_life

Here is a side shot of the slimmer iPhone 3G

Slimmer

A shot of the back of the new iPhone in black and white versions:

MobileMe

Apple head of worldwide sales and marketing Phil Schiller introduces MobileMe, a desktop-quality e-mail, calendar and contacts Web service. It’s a companion Web service for iPhone users. It’s priced at $99 a year and will be available in early July, he says.  

MobileMe provides automatic synchronization between an iPhone and the Web for e-mail, pictures and contacts. For example, a photo shot on the iPhone can instantly be uploaded to the Web using MobileMe. 

It offers drag-and-drop capability to move messages from inbox into folders. The service replaces Apple’s existing .Mac service.