The new 3G iPhone will be out on July 11 for only $199 with a two year contract with ATT. I wish the iPhones were that affordable when I was shopping for a new cell.
According to the agreement between Apple and ATT, if purchased with a two year contract an 8GB iPhone 3G will cost $199 and the 16GB model will be $299. Unlimited data plans for both phones start at $30 a month, in addition to charges for a regular plans. More details about the plans are available on ATT's website.
The new phone is much faster on the new 3G network, has more hours of standby time (300), built in GPS, and more hours for Internet browsing, and storage of video and audio.
During the presentation of the iPhone, the Apple staff also announced the Mobile Me service, that promises for $99 a year to sync data between your iPhone and Mac computers and even PCs using Windows as an operating system.