• Seattle Post-Intelligencer, Tuesday, June 10, 2008 10:15 AM

Apple CEO Steve Jobs yesterday introduced new iPhones that are designed to work over so-called 3G -- or third-generation -- wireless networks and have global-positioning technology built in.

They will also support Microsoft's Exchange software, an addition that puts the iPhone in more direct competition with Research in Motion's BlackBerry and Palm's Treo smart phones and is intended to appeal to the business market.

Most significantly, the iPhone will be $200 cheaper -- and come with satellite navigation, faster Internet access and other new features. An 8-gigabyte version with the new features will go for $199 when it goes on sale July 11, and a 16-gigabyte model will cost $299. Analysts have said Apple needed to slash the iPhone's price and make it usable on faster networks to hit the company's target of selling 10 million iPhones by the end of 2008. Apple says the 3G iPhones download data twice as fast the older ones.

Apple also announced a new Web-based service called "MobileMe," a consumer-friendly way for people to link their iPhones to their home and work computers so updates entered into one device automatically appear in the others. Apple is also pulling out of revenue-sharing arrangements with some wireless carriers, a move that frees the carriers to charge higher prices for the service.

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