Apple has unveiled its intention of dominating the smartphone market by slashing the cost of the iPhone 3G to just $SU99 at this years Worldwide developers Conference in San Francisco.

The Apple iPhone 3G sports none of the bells and whistles of the iPhone 3GS, also announced at the conference, and with only 8 Gbytes in memory is firmly positioned at the entry level of the smartphone market.

Undercutting the current entry level iPhone by$US100, the iPhone 3G will feature a 2 Gbyte still image only camera with fixed focusing, up to 10 hours of talk time and 24 hours of audio playback, as well as up to six hours of WiFi internet browsing.

Coinciding with the announcement, Apple also unveiled a much higher specification iPhone, the iPhone 3G S with a suped-up three megapixel camera, video filming and editing capabilities and automatic focusing.

The new iPhone 3GS will be available in either a 16 Gbyte configuration for $US199 and a 32 Gbyte model for $US299.

For an extra $US100 the iPhone 3G S also provides voice control for accessing names in your address book, or for recalling the names of tunes in your iPod, with built in support for 31 languages or regional variations of languages.

Both the entry level and higher spec’d iPhones have access to the Apple iPhone App Store with more than 50,000 applications available for download.

Both of the new iPhones feature user selectable portrait or landscape oriented keyboards, Spotlight search capability, SMS and MMS messaging functions and voice memo recording capabilities.

The iPhone 3G and 3GS will be available on June 19 in the US and July 7 throughout the rest of the world and both have access to the Apple iPhone App Store with more than 50,000 applications currently available.