Apple has officially launched the new iPhone 3G after weeks of speculation.

The company says that the new device is a combination of the existing iPhone and the networking powers of 3G, which it claims is "twice as fast at half the price ".

Apple announced that the new iPhone will be priced at $199 for the 8GB model, with the 16GB version available for $299.

The new software integrated into the iPhone 3G will provide users with faster access to the internet via quad-band GSM and tri-band HSDPA, according to the company.

Steve Jobs, chief executive of Apple, said: "iPhone 3G supports Microsoft Exchange ActiveSync right out of the box, runs the incredible third party apps created with the iPhone SDK, and will be available in more than 70 countries around the world this year."

Apple also announced that over 250,000 developers have downloaded its iPhone Software Development Kit since its launch at the beginning of March.