Apple unveils zippier iPhone 3G S

ByABC News
June 8, 2009, 11:36 PM

SAN FRANCISCO -- Apple has a cool new iPhone, the 3G S, coming out next week, with faster speed, longer battery life and a video camera for $199 but if you bought an iPhone recently, exclusive U.S. carrier AT&T says you won't get the phone at that price.

The new phone will sell for $199 with a two-year contract. AT&T says it will be available at that price only to those with a "few" months left on their contract and to new customers. Otherwise, the phone is $399 for the new 16-gigabyte version, or $499 for a 32GB model.

The price of the current 8GB model falls to $99.

Beyond the hardware, upgraded iPhone operating system software will be available worldwide June 17, free for iPhone users, and $9.95 for iPod Touch users. Highlights include cut-and-paste controls and MMS visual text messages so you can add pictures and audio clips to text messages.

Another feature, tethering, allows an iPhone to share its Internet connection with a PC.

But tethering is not yet supported by AT&T. "AT&T is behind the ball," says tech analyst Tim Bajarin at researcher Creative Strategies. "Pressure is on them. I expect tethering ... before the fall."

A medical application from AirStrip Technologies monitors patients' heartbeats remotely. It is currently awaiting FDA approval.

GPS veteran TomTom brings audible turn-by-turn directions to the iPhone. The GPS app, available this summer, will also be sold with an optional accessory that displays it on your windshield. No pricing was announced. The iPhone has GPS now, but it doesn't offer audible directions.

Beyond the iPhone, Apple introduced revised versions of its MacBook Pro laptops, with lower prices, improved battery life and greater storage capacities. Apple said its operating system upgrade, Snow Leopard, will be available in September. For current users of Leopard, an upgrade will sell for $29.