The upgraded handset will offer 32Gb of memory, video recording, a 3-megapixel camera and voice control. It will cost £538.30 on O2 pay-as-you-go; a 16Gb version will be priced at £440.40.
Apple has also cut the price of its existing iPhone 3G to $99 (£61.30) as it looks to grow the number of phones it has sold beyond 40m.
O2 remains the manufacturer’s exclusive operator distribution partner in the UK.
Apple also announced the iPhone 3.0 operating system will be released on 17 June. It included the ability to run apps in landscape mode, video content rentals and in-app billing for premium apps.
This story first appeared on newmediaage.co.uk