MUMBAI: Apple has announced the release of a speedier, more sophisticated version of its much-talked iPhone thus giving a stiff competition to its rivals. The second series of iPhones will also be cheaper than its earlier versions.

Apple's chief executive Steve Jobs announced details of the much anticipated 'next-generation iPhone' - which will be faster than the earlier version and capable of satellite navigation.

The new 8GB iPhone will cost $199 (?100) in the US - a third of what the equivalent device cost when it was launched in June last year - though this may be made up for by more expensive contracts with operators. A 16GB version will sell for $299.Jobs said that the new device would be available in 22 countries - including the UK - in a month, and 70 countries later in the year. "The No 1 reason people didn't buy iPhones is because they just couldn't afford it," said Jobs.

Aside from being cheaper, the most significant improvement in 'iPhone mark II', is that it works on the high-speed 3G network, which will mean it can download content such as videos from the internet much more quickly.

Many gadget-lovers held off buying the previous version because its most innovative feature - a web browser which enables owners to zoom in and out on web pages by making pinching gestures on the screen, was earlier impaired by slow networks.

The new phone also has GPS, by which it will be able to locate itself more accurately via satellite and will offer more services tailored to the owner's location.

The device has a more curved look, with thinner edges, and replaces the existing brushed metal back with black plastic. It also has better tools for synchronizing work an owner's work e-mail and calendar, which has been the staple of its rival, the BlackBerry.

Apple has come under increasing pressure to sell more iPhones, particularly in Europe, where 3G networks are more widespread than in the US and where demand for the slower version has been disappointing. Following this Apple was forced to cut down it price in Europe.

Apple's competitors, meanwhile, have also been ramping up their offerings for the summer, which will in turn put greater pressure on iPhone to make an impact in Europe with its new device. RIM has announced the latest version of the BlackBerry, which will also have speedier internet access and allow faster downloading. HTC, the Taiwanese manufacturer, meanwhile, will release its new Diamond handset, offering a similar touchscreen browsing experience to the iPhone.