June 26, 2008 3:58 AM PDT
At Apple's Worldwide Developers Conference in June, Jobs introduced the long-awaited next-generation iPhone. New features include a faster 3G Internet connection, GPS, new apps, and a low-end price of $199.
The faster connection had been expected for a long time, but many were surprised by the lower price tag, which is the result of subsidies from AT&T. Apple and AT&T changed the business model for the iPhone with the launch of the 3G model. This moves Apple more toward a traditional smartphone model with lower prices subsidized by the carrier, who then requires a two-year wireless contract. AT&T will also require iPhone 3G buyers to activate their devices in-store, rather than at home.
Photo by James Martin/CNET News.com
