Apple has answered the demands of iPhone fans by releasing a new high-end iPhone 3GS and a lower cost iPhone 3G at the annual Worldwide Developers Conference (WWDC) in San Francisco today.

The new iPhone 3GS is the fastest, most powerful iPhone yet released by Apple, with the company claiming most applications will run at least two times faster on the new model.

The iPhone 3GS features a three megapixel, autofocus camera with the ability to shoot and edit video directly on the phone, as well as voice control and a built-in electronic compass.

The new iPhone 3GS also features a longer battery life, with Apple claiming up to nine hours of WiFi web surfing, up from the six hours of current models.

The iPhone 3GS will be available in black or white with the 16 Gbyte version selling for $US199 and the higher, 32 Gbyte model having a price tag of $US299.

In its quest to dominate the smartphone market, Apple also unveiled a lower cost iPhone, the iPhone 3G.

Prices at $US99, the iPhone 3G misses out on many of the bells and whistles of its more expensive cousin and comes with a two megapixel camera and no video capability.

Battery life on the entry level iPhone 3G is claimed to be the same as on current models, six hours for WiFi internet use and up to five hours of talk time on a 3G network or 10 hours on a 2G system, and up to 24 hours of audio playback.

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.