The iPhone just got a lot cheaper – and a lot stronger

Apple today cut the price on the iPhone 3G to $99, effective
immediately. The company also unveiled the iPhone 3GS, an advanced version of
the popular smart phone that will go on sale June 19.Iphone3gs

The one-two punch comes a day after Palm launched its
eagerly anticipated Pre, which analysts estimate sold between 50,000 to 60,000
units in its opening weekend.

$99 is considered a magic price point and could double
demand for the iPhone. It also could move the company into a neck and neck race
with Research in Motion for the second place spot in worldwide Smartphone sales
within the next year. (Nokia remains far and away the segment leader.)

Apple claims the iPhone 3GS is two- to three-times faster
than existing models. The 32GB model will sell for $299, while a 16GB model
will go for $199.

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