APPLE has unveiled a new version of its popular iPhone built for high-speed wireless networks with faster internet access and more features for business users.

"It's incredibly zippy," chief executive Steve Jobs said as he demonstrated the new mobile device at the opening of Apple's annual Worldwide Developers Conference in San Francisco.

"We've learned so much with the first iPhone. We've taken what we've learned and more and created the iPhone 3G; and it's beautiful."

The iPhone 3G - for third-generation mobile networks - is designed for faster internet downloads, longer talk times, and takes advantage of the high-speed network to provide GPS mapping built in, Mr Jobs said.

Apple will roll out new versions of the sleek smartphone devices beginning July 11 and make it available in 70 countries. The first iPhone, which went on sale June 29 of last year, is available in six countries.

"The next time you are in Malta and need an iPhone, you will be able to get it," Mr Jobs said.

IPhone's software update features "many new languages," including two forms of

Japanese and two forms of Chinese, one that lets users draw characters on the devices' touch-screens.

"You can switch between languages on the fly," Jobs said. "It's one of the great advantages of not having a bunch of plastic keys for your keyboard."

The crowd cheered when Jobs announced the iPhone 3G will sell for $US199 ($210) with eight gigabytes of memory. Apple will charge $US299 ($310) for a model with 16 gigabytes of memory.

"It is a very aggressive price point and it is going to do some damage to the other players in the market," Gartner analyst Van Baker said, listing BlackBerry and Nokia among competitors in iPhone's crosshairs.

"It is clearly moving iPhone from being noticeable in the market to being potentially a market leader."

The eight-gigabyte iPhone 3G will be priced $US200 less than its predecessor and is expected to work three times as fast.

Mr Jobs also said iPhone's second-generation software will let business users send and receive Microsoft Exchange email, in a direct shot at rival BlackBerry.

The iPhone software update is aimed at a business market that is currently hooked on BlackBerry devices made by Canada-based Research In Motion.

BlackBerry handsets have long let people "push" work email to the devices using the Microsoft email system.
Apple worked with Cisco Systems to build virtual private network (VPN) services into iPhones so businesses can establish secure connections to protect data being transferred.

Thirty-five per cent of US Fortune 500 companies and the US military have "beta" tested iPhone's enterprise email, according to Mr Jobs.

"It really has the ability to pack the power of a laptop into the size of a smart phone," Randy Brooks, senior vice president of information technology at Walt Disney Company said.

Apple introduced a "Mobileme" service that lets people access personal email accounts on iPhones, laptops, or home computers via the internet.

Apple also showcased iPhone applications crafted by third-party developers as part of a move to stock an "App Store" with hip, fun or practical programs.

IPhone programs included games, social networking, medical studies, and converting the devices into musical instruments.

The original iPhone was launched on June 29, 2007, and set off a global buying frenzy. Mr Jobs said Apple has sold six million iPhones to date.