The new iPhone 3G combines all the original features of the iPhone plus 3G networking that is twice as fast, built-in GPS for expanded location-based mobile services, and iPhone 2.0 software, which includes support for Microsoft Exchange ActiveSync and runs more than 800 third-party applications available through the new App Store. In the U.S., the new iPhone 3G is priced at $199 for the 8GB model, and $299 for the 16GB model.

A 'Great Start'

The iPhone 3G is selling in 21 countries -- Australia, Austria, Belgium, Canada, Denmark, Finland, Germany, Hong Kong, Ireland, Italy, Japan, Mexico, Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, UK and the U.S. -- and will go on sale in France on July 17.

"iPhone 3G had a stunning opening weekend," said Apple CEO Steve Jobs. "It took 74 days to sell the first one million original iPhones, so the new iPhone 3G is clearly off to a great start around the world."

10 Million in Three Days

Apple also announced that iPhone and iPod touch users have downloaded more than 10 million applications from the App Store since its launch late last week. More than 800 native applications are available, with more than 200 offered free and more than 90 percent priced at less than $10.

Developers have created a wide array of mobile applications ranging from games to location-based social networking to medical applications to enterprise productivity tools. Users can wirelessly download applications directly onto their iPhone or iPod touch and start using them immediately.

"The App Store is a grand slam, with a staggering 10 million applications downloaded in just three days," Jobs said. "Developers have created some extraordinary applications, and the App Store can wirelessly deliver them to every iPhone and iPod touch user instantly."

Too Much iHype?

Daren Tsui, CEO of mSpot and an expert in 3G entertainment, said the wireless landscape has evolved significantly since the first iPhone made its breathless debut, and users today can easily get the iPhone's once-unique qualities from a variety of high-quality competitors.

More important, they can avoid the iPhone's potential pitfalls and limited platform capabilities altogether, he said. Those pitfalls, Tsui said, include the fact that the iPhone is limited to one carrier and remains beholden to AT&T , the merits of an over-the-air system versus the iPhone's side-loader system, and the universal availability of mobile entertainment concepts for handhelds.

"The overwhelming buzz marketing machine behind the 3G threatens to distract users from the fact that, simply put, the device's clever qualities are out there and available in other, better phones these days," Tsui said. "Push aside the hype, and you'll see that serious carrier and platform restrictions threaten to limit Apple's growth."