Certainly, never a smartphone that's held wide appeal has carried that price tag. In , the iPhone's new price ties the Nokia E71x for the least expensive smartphone we've seen (street price, not including rebates). Though that phone has a reasonable degree of usability, it can't compare to the simplicity and sexy "It Phone" factor of the iPhone.

The new phone, the iPhone 3G S, will be go on sale nationwide and in select countries (including the France, Germany, Italy, and the United Kingdom) on June 19. In keeping with previous trends, the phone's pricing tiers stay the same, only you get more memory for your money: 16GB for $199, and 32GB for $299.

You may need that extra space: Two of the big features for iPhone 3G S are the camera (upgraded to 3.0 megapixels), and the inclusion of video recording (finally) at 640 by 480 pixel resolution, 30 frames per second.

The camera and the inclusion of hardware encryption -- a welcome feature for business environments -- are the only new features that clearly mark a hardware change, though. Even though Schiller said during the keynote that "everything inside" the phone had changed, when asked, Apple representatives declined to specify what hardware had actually changed, and instead pointed to on its Web site (an Apple spokesperson indicated that we could "infer" what had or hadn't changed based on those published specs).