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During the keynote address at WWDC 2009 Phil Schiller, the senior vice president of Apple's worldwide product marketing, revealed the new iPhone 3GS. The new iPhone model has the same design as the iPhone 3G, however the S stands for speed.

The new model will be faster and have a higher storage capacity. Apple also announced that an 8GB version of the iPhone 3G will sell for $99.

As expected, Apple's third incarnation of their revolutionary iPhone was announced today at the 2009 WWDC. Though the iPhone announcement followed big, exciting news about new Macbook models and a whirling overview of Snow Leopard, like you, it was the iPhone 3GS grit we were waiting for. After a short session of back-patting about the success of the iPhone AppStore and in-depth overview of the new iPhone OS 3.0, Apple dished out the goods on the new iPhone model.

Phil Schiller announced the new iPhone 3GS as a "really fast iPhone", and then offered up supporting benchmarks that show the new iPhone 3GS as roughly 2x faster than the iPhone 3G model, across most applications.

Schiller also confirmed the presence of 7.2Mbps HSDPA support and gave an in-depth overview of the new 3 megapixel camera in the iPhone 3GS. The new camera offers exciting features such as macro photo taking as close as 10cm from your subject, tap-to-focus

During the keynote address at WWDC 2009 the head of Apple's iPhone software development, Scott Forstall, revealed major new features coming to iPhone OS 3.0.

The new iPhone OS will be released worldwide on June 17th. The cost to upgrade firmware will be $9.95 for iPod Touch and free for iPhone.