Apple has the price of its 3G iPhone with 8 GB memory for up to $ 99 (£ 61).
It made the announcement at its annual developer conference where they unveiled a new iPhone 3GS.
The “S” stands for speed, Apple said, because under the hood improvements to hardware accelerate common tasks such as graphics rendering.
The 3GS has a better battery life. Apple says that it must be for 5 hours talk time and nine hours of Wi-Fi network navigation between charges.

BBC Maggie Shiel reports from the conference that the wave of speculation that before the event seemed to lower expectations, many say that the speech will not be surprised.
“It is not a game change now,” said Steven Levy of Wired magazine.
“We’ve trained to believe that if something comes from Apple will rock our world, and today that does not happen.”
However, Ge Wang, founder and promoter of SMUL, which develops applications for the iPhone, said he was impressed, although it is not a headline grabbing speech.
“We are delighted to use everything that we can use our hands to our applications more attractive, and perhaps a bit more magical,” he said.
3GS iPhone can be done by voice and talk back to your landlord about the music being played.
The amendments update the onboard camera 3megapixels to 2megapixels in earlier versions. 3GS iPhone can also record video at 30 frames per second.
3GS iPhone will cost $ 199 for a 16 GB version and $ 299 for a 32 GB version. The phone will be from 19 June in the U.S. and the UK. No information on prices in the United Kingdom.
It is unclear what the price difference in return to offer the 3G iPhone is already free.
Apple presenting at the conference by developers around the world was a “Find my iPhone for the phone feature that lets users know where your phone is lost. The service is only available for MobileMe subscribers.
Apple says it has more than 40 iPhones and iPod touch devices.
Also updates its line of MacBook laptops, the lower prices, encourage and improve the speed of the machines’ life of the battery.
Despite the rumors, Apple CEO Steve Jobs does not have a gig at the conference.
The news comes just hours after the veteran Palm with his much anticipated phone earlier.
Although no large queues, it is very popular with the small quantities which one to buy.
The Trial Chamber is in the U.S. Sprint network. Word has not yet come when, in the United Kingdom. O2 is the network for the United Kingdom in the Pre.
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