There have been rumors that Apple would release a cheaper iPhone (News - Alert) and today the truth has been revealed. Apple and AT&T will introduce on June 19 the iPhone 3GS. “The S stands for speed,” says Phil Schiller, Apple's (News - Alert) senior vice president of Worldwide Product Marketing. The new iPhone model is said to be able to load applications about twice as fast as previous 3G models.

 

According to the Wall Street Journal, the announcement came during a presentation by Apple executives at an annual conference for Apple software developers. Chief Executive Steve Jobs (News - Alert), who has been on a medical leave, didn't appear on stage.

 

"iPhone 3G S is the fastest, most powerful iPhone yet, and we're extremely proud to offer it to our customers on the nation's fastest 3G network," said Ralph de la Vega, president and CEO, AT&T (News - Alert) Mobility and Consumer Markets. "We're also pleased to offer these innovative phones and plans at incredible values, including free Wi-Fi access at nearly 20,000 hot spots."

 

Built with 7.2MBps HSDPA into the device, data speeds should increase as Apple’s carriers build out their 3.5G networks. A new camera is included with the 3GS, with a 3-megapixel resolution and auto focusing capabilities.

 

Apple’s new iPhone 3GS also captures video that comes equip with editing features. Also included is a voice control.

 

According to Technologizer, the device will also allow apps to respond to you with information, such as an iPod app saying the song title that’s playing when you ask the name of the song.

 

Orienteering adventurists will find the compass feature that integrates with maps a delight.

 

Apple also improved battery life with 12 hours of 2G talk time, and five hours at 3G. Users will also be able to surf the Internet for up to nine hours, listen to music for 30 hours, and watch videos for ten hours.

 

The new iPhone 3GS 16GB will be available for $199. A 32GB model is also available for $299. The big news is that the 8GB is now $99. While existing standard 3G iPhones will now drop to $99.

 

Based on independent market research, twice as many smartphone users have chosen AT&T over any other U.S. carrier. "I expect this great new iPhone 3G S and a $99 iPhone 3G on our mobile broadband network will spur even more smartphone customers to choose AT&T," said de la Vega.