hat a difference a year and a half makes. The highly anticipated next-gen 3G Apple iPhone is emerging as a faster, less expensive and more worldly dream phone, in a move demonstrating how central it is to Apple's future.

Not only that, but the , with its much-anticipated makeover, will begin shipping 3G iPhones in 22 countries on July 11, chief executive Steve Jobs told the audience of the company's World Wide Developer Conference in San Francisco.

Speaking on stage at Apple's Worldwide Developers Conference, Jobs was his animated self as he unveiled the company's new iPhone, with 3G features, faster Internet speeds and built-in GPS capabilities.

"Just one year after launching the iPhone, we're launching the new iPhone 3G that is twice as fast at half the price,'' Jobs said on stage at the conference.

Apple's MobileMe, a new Internet service offering a suite of programs based on Ajax, is a competitive edge.

"We did figure out what our next challenges are, the next mountain we have to climb," Jobs said. "The number one reason people didn't buy the iPhone was that they couldn't afford it, so we need to make the iPhone more affordable."

The new 3G model will start at $199 for an 8GB model and $299 for a 16GB model, cutting the price in half and loading the phone with powerful new third-party applications intended to boost sales.

Those apps include built-in GPS, MobileMe Apples new Internet service, and 2.0 software with support for Microsoft Exchange Active Sync – clearly added in order to compete head on with RIM's BlackBerry and Nokia in the battle for the lucrative "smartphone" market.

On a relentless drive to become the No. 1 cellphone supplier in the world, Apple said the company's next-gen iPhone will be available in more than 70 countries later this year. But it will take a while for Apple to actually achieve this as RIM's BlackBerry is in a fairly solid position.

The changes reveal some of the difficulties that Apple has found with moving into the phone industry. With sales falling short of expectations, Apple execs know they have yet to make the same impact with the iPhone that they managed with the iPod.

Still, Apple's MobileMe, a new Internet service offering a suite of programs based on Ajax, is a competitive edge. If you get an email to your MobileMe account, it’ll be shuttled to all three devices - iPhone, Mac and PC. You can upload photos to the account and see them online.