Next-generation iPhone is unveiled

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Gadget lovers will also have the option of a 32GB memory on the iPhone 3G S, twice that available on the current model and enough for 7,000 songs to be stored.

The latest model goes on sale on June 19 and Apple announced it was halving the price of the current 8GB iPhone 3G.

Philip Schiller, Apple's senior vice president of Worldwide Product Marketing, said: "iPhone 3G S is the fastest, most powerful iPhone yet and we think people will love the incredible new features including autofocus camera, video recording and the freedom of voice control.

"And with a breakthrough price of 99 US dollars (£61.56), we are thrilled to get iPhone 3G into the hands of even more users who want them."

The latest generation of iPhones has a new "tap to focus" feature on its three megapixel camera which allows the user to touch the display to select an object or area of interest, prompting the camera to automatically re-adjust the focus and exposure.

The phone also allows editing of video clips and the ability to send photos and video by email or MMS and post them to MobileMe or YouTube with just one tap. Games lovers have been promised "stunning" high-quality 3D graphics and music lovers can use the voice control feature to pause, play or ask for "more songs like this".

The phone will also prevent its owner from getting lost with a built-in digital compass and a feature which automatically orients any map to the direction you are facing. If the phone is lost, iPhone 3.0 software includes a feature to locate it on a MobileMe map or make it play a sound even if it is set to silent. If that fails to find it, there is a remote wipe feature to erase all the data and content.

Visually impaired users will benefit from a screen reader so they can listen to their emails and browse web pages. They can also magnify the screen with the zoom function or reverse the colours to provide higher contrast.

The iPhone 3G S was launched at The Worldwide Developers Conference in California tonight and will cost 199 dollars for the 16GB model and 299 dollars in the US. UK prices have not yet been confirmed but are expected to be around £340 for pay-as-you-go customers, less for those on a contract.