Apple unveils new, faster iPhone 3GS

SAN FRANCISCO (MarketWatch) - Apple Inc. The new iPhone was the highlight of Apple's annual gathering of developers in San Francisco, in which company also cut the price of its current iPhone 3G to $99 and debuted a revamped line of MacBook Pro notebook PCs. Phil Schiller, Apple's senior vice president of worldwide product marketing, introduced the new iPhone, highlighting the device's new 3-megapixel camera, its capability to capture video and features such as new voice controls for making calls and playing music through the iPhone's iPod function. The newest model of the iPhone - which Apple said runs twice as fast as the current model - will come in two versions, an 16-gigabyte device for $199 and a 32GB version for $299, and will be available on June 19. New capabilities Scott Forstall, Apple's senior vice president of iPhone software, showed off some of the new functions of the new iPhone 3.0 operating system, including the capability to rent and purchase movies and videos from the iTunes Store. Forstall said the new iPhone operating system - dubbed iPhone 3.0 - will be available worldwide on June 17 as a free download for iPhone users, and will cost $9.95 to download to the iPod touch. In addition to the new line of iPhones, Apple showed how important notebooks have become to its overall Mac sales by updating its MacBook Pro notebook line. Apple said Snow Leopard will be available in September and users of Apple's current Leopard operating systems will be able to purchase an upgrade for $29, or a five-user family pack for $49.