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Apple shows 16GB/32GB iPhone 3GS

And cuts price of iPhone 3G immediately.

Apple has unveiled a new iPhone with an improved camera, better battery life and more memory, and cut the price of the iPhone 3G immediately.

The iPhone 3GS will launch on 19th June in the US and the UK, where exclusive carrier O2 will charge GBP 440.40 for 16GB and GBP 538.30 for 32GB pay-and-go models.

Monthly plans lock you in for 18 or 24 months and reduce the price of the hardware accordingly.

The existing 8GB iPhone 3G will now be sold for GBP 342.50 on pay-and-go and under GBP 100 on the two lowest 18-month tariffs, or for free on any of the higher or 24-month versions.

Speaking at the 2009 Worldwide Developer's Conference in San Francisco, Apple said the iPhone 3GS - the "S" stands for "speed" - introduces a 3-megapixel autofocus camera that also captures video at 30FPS, and uses OpenGL ES 2.0

It also has a built-in digital compass (er), support for 7.2Mbps HSDPA, and voice controls that allow you to dial numbers without dialling.

More significantly, Apple says the battery life has been improved to five hours talk time, nine hours on Wi-Fi and 30 hours of audio playback. The current iPhone 3G lasts about seven minutes doing anything.

19th June is also the launch date for the new iPhone 3.0 firmware, which is compatible with existing iPhone 3G and iPod Touch models.

Apple said yesterday that it will also introduce push notification options for developers, make Google Maps available in-app and allow for peer-to-peer networking for paid applications.