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Mr Jobs, speaking at Apple's Worldwide Developers Conference, said: "The number one reason people didn't buy the i Phone was that they couldn't afford it, so we need to make the i Phone more affordable." In the US it will cost 9 but in Britain it will be free for customers on certain tariffs.It will only be available from O2, Carphone Warehouse and Apple stores, and will only work on the O2 network.
Announcing the new phone Apple Chief Executive Steve Jobs said: 'It's amazingly zippy.' He added the new i Phone, available in black and white, loads Internet pages about 2.8 times faster than the original.
Mobi Gage NDI Mobi Gage is a metrology i Phone application used for the inspection of manufactured parts and assemblies.
Mobi Gage creates, edits, and runs measurement plans and automates inspection processes.
Apple is also set to begin selling add-on software, including games, for the phone and has signed up developers such as Sega.
Games are expected to cost between £10 and £20 when they go on sale next month.