The iPhone 3G includes networking that is twice as fast as the first generation iPhone, built-in GPS, and support for Microsoft Exchange ActiveSync. (Courtesy Apple)

SAN FRANCISCO — Apple Inc. has unveiled an upgraded iPhone with a faster Internet connection and GPS capabilities.

Analysts have said Apple needed to upgrade the iPhone's Internet connection to work over so-called 3G, or third-generation, wireless networks to hit its target of selling 10 million of the devices by the end of 2008. An 8 gigabyte model is to sell for $199 starting July 11.

The addition of global-positioning technology improves the iPhone's accuracy in locating users. Current versions use a combination of cell phone towers and Wi-Fi locations to do the same thing.

Chief Executive Steve Jobs showed off the phone at Apple's Worldwide Developers Conference in San Francisco.


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