Apple Unveils New Version of iPhone, Drops Price of Old Model to $99

At its yearly Worldwide Developers Conference today, Apple drew back the curtain on the much-rumored hardware update to its ubiquitous iPhone: the iPhone 3GS. It looks similar to current models, but the “S” stands for speed: Under the hood, the 3G S boasts improved speed and quicker loading times for apps, Web pages and everything else you can imagine. The 3GS also has an updated 3-megapixel camera with autofocus and enhanced video power—take clearer, sharper pictures with ease, or shoot your own videos, edit them right on the iPhone and post them on YouTube with a single tap. The new model also features voice-control of your iTunes music, a built-in compass to help make maps more reliable, longer battery life and at least twice as much storage space for all of your tunes.

The 16GB model of iPhone 3GS is $199 and the 32GB model is $299 (both models still require a new two-year AT&T calling plan with purchase), and will be available on June 19 both on Apple’s website and in select retail locations. And for savvy shoppers who’ve been waiting to jump in, the price of the existing iPhone 3G has been slashed to just $99 with a two-year AT&T plan—and is available today, right this very moment, both online and in-store.