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Steve, calling it the phone that changed phones, praised the iPhone’s 90% customer satisfaction and 98% mobile browsing and overall greatness. What could come next? Steve talks about them running out of iPhones, and their next mountain to climb. It’s a big mystery…and it is 3G. The iPhone in more countries. Steve acknowledges that they are in use in many more countries than the six they sell them in. Lastly, the iPhone needs to be more affordable. I’m just giddy.

Today, they introduce iPhone 3G, thinner, tapered, with a black plastic back, solid metal buttons, same gorgeous 3.5” display, a flush headphone jack, dramatically improved audio, and 3G. It looks like the mockups we’ve been seeing.

Steve says the 3G increased browser speeds. 21 seconds on 3G, and after a long long wait and some whistling, 59 seconds on EDGE. 3G is 2.8 times faster. iPhone 3G is 36% faster than the Nokia 3G phone.

The iPhone 3G battery stand by time is 300 hours, 2G talk time 10 hours, 3G talk time 5 hours, Browsing 5-6 hours, Video 7 hours, Audio 24 hours. Even better, this is with GPS included. GPS is now added in addition to other cell tower location systems, and it actively tracks you.

The iPhone is coming to many additional countries: while playing “It’s a Small World” a montage of countries appears onscreen. The audience periodically bursts into applause. Pretty much every country in the world is getting iPhone’d by the sound of it. Over 70 countries is the final tally.

Here comes the most important part… price. he said he wanted to make it affordable. How much will it cost? The iPhone 3G will sell for…$199. The audience explodes! The 16 gig model is just $299, with a white version available. Rollout starts July 11th.