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Apple unveils the £100 iPhone 3G

Steve Jobs unveiled the second generation of Apple's iPhone at the company's Worldwide Developers Conference yesterday. The iPhone 3G, a cheaper and more powerful version of the iPhone, combines an iPod, mobile phone and touch-sensitive internet browser with a high-speed 3G internet connection and will cost £100.

Apple is hoping that its new iPhone 3G can help it to increase its share of the smartphone market a sector which is currently dominated by Nokia and Blackberry. While the iPhone currently enjoys a 20% share of the smartphone market in the US that figure drops to 5% in smartphone sales worldwide.

The iPhone 3G will face stiff competition in the smartphone market from the Nokia N96, the Blackberry Thunder and the soon to be released Google Android platform. But the 8GB iPhone 3G, which will be released in the UK on 11 July, is set to retail for £100 with Steve Jobs citing the price of the original iPhone as the main reason behind its disappointing worldwide sales figures.

Steve Jobs WWDC Keynote (in 60 Seconds)

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