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iPhone Updated with New Features, Lower Price

Apple fans are rejoicing, after Apple CEO Steve Jobs announced the next generation of iPhone to a gathering of over 5,000 software developers in San Francisco.

The new version, due in stores July 11, runs on the fast 3G network. The 3G iPhone costs less money and has a few new features. But more importantly, it improves the snail-like web access many saw as the iPhone's key flaw.

The new iPhone will start at $199 — far less than the $600 price tag when the phone debuted a year ago. Michele Norris talks to Omar Gallaga,who covers technology for The Austin American-Statesman, about the new phone.

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