It adds 3G capability, has built in satellite navigation, and will sell for just $199 worldwide for the 8GB version.
It goes on sale on July 11, and will be much more widely available than the old one - it'll be on sale in 70 countries over the next few months.
Some of the stats of the new version include better battery life
- Standby is 300 hours
- 2G talktime 10 hours (up from 8)
- 3G talktime 5 hours (rivals have 3 hours apparently)
- Browsing - 5-6 hours
- Video 7 hours
- Audio - 24 hours.
The new iPhone also claims much faster downloading of web pages, as Tom Dunmore of Stuff magazine reported from the announcement in San Francisco.
it was shown downloading a graphics-heavy web page, this taking "21s in 3G and 59s on EDGE. Wi-Fi was 17 seconds. The iPhone is 36% faster than the Nokia N96 in downloading a website."
UK availability is yet to be announced for the phone, but some stores are apparently already suggesting August 8th.
UPDATED: Looks like it's coming to the UK on July 11, according to some online reports.
"Also on July 11, iPhone 3G will be available in 21 other countries: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Italy, Japan, Mexico, Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom."