As expected, Apple CEO Steve Jobs yesterday unveiled the long-awaited 3G iPhone, putting an end to months of speculation about the new device’s pricing, format and features. The thinner smartphone – featuring HSPA connectivity with GPS functionality – will launch in 22 countries on July 11 for between US$199 (for the 8GB version) and US$299 (16GB). This contrasts with the US$399 starting price for the current EDGE-enabled iPhone and puts the 3G iPhone price in line with rival devices from the likes of Nokia and RIM. “We need to make iPhone more affordable,” said Jobs, adding that the company has so far sold 6 million iPhones worldwide and has a target of 10 million by year-end. From July 11, the 3G iPhone will go on sale in Australia, Italy, New Zealand and Portugal with Vodafone; in Austria, Germany and the Netherlands with T-Mobile; in Denmark, Finland, Sweden and Norway with TeliaSonera; in Austria, Belgium, France, Switzerland and Portugal with Orange; in Switzerland with Swisscom; in Italy with Telecom Italia; in Hong Kong with Hutchison Telecom; in Spain with Telefonica; in Mexico with America Movil; in Japan with Softbank; in the UK and Ireland with O2; in Canada with Rogers Wireless; and in the US with AT&T. Jobs said the company has deals to launch in an additional 49 countries, taking its expected market base to over 70 countries by the end of this year. The executive also confirmed rumours that Apple is reviewing its revenue-sharing deals with mobile operators to allow for subsidies. O2 UK has already announced it will offer the device for free if consumers sign-up to its higher-priced monthly tariffs.

The device includes the new iPhone 2.0 software, also available for download, as well as the iPhone Software Development Kit for supporting third-party applications and enterprise features such as support for Microsoft Exchange ActiveSync to provide over-the-air push email, contact and calendar syncing, and remote access to corporate networks. Apple also added the new ‘App Store’ to the device, providing iPhone users access to free and paid third-party applications for the phone in categories including games, business, news, sports, health, reference and travel. The App Store will be available in 62 countries at launch. In addition, the 3G iPhone includes MobileMe, Apple’s new Internet service that pushes e-mail, contacts, and calendars from an online ‘cloud’ to native applications on iPhones, iPod touch, Macs and PCs.