At Apple’s annual Worldwide Developer Conference (WWDC) in San Francisco, Steve Jobs introduced a brand-new iPhone: the iPhone 3G.
Features include:

3G speed ( 3x faster internet connection)

Built-in GPS (with live tracking, no turn by turn)

Thinner design

Cheaper ($199 for 8GB, $299 for 16GB)

Microsoft Exchange support (push e-mail, contacts, etc. with ActiveSync)

Available July 11

Jobs also introduced MobileMe, [...]