New iPhone unveiled: Stocks drop

Reporter: Emily Pantelides

NEW YORK CITY, NY (Fox 29) - Apple kept the improvements to one of its core products strictly confidential until now.

Steve Jobs, the head of Apple, showed off his company's latest innovation, "We've taken everything we've learned and more, and we've created the iPhone 3-G."

Using third generation wireless technology, Jobs says, the new phone downloads complex web sites in 20 seconds. It has GPS tracking and will work in 70 countries by the end of the year.

It's been almost a year since the first iPhone, which looked and felt completely different than all the others. More than 6 million sold, but why?

Alex Albright tracks new media, "how many touch screen cell phones are you seeing from Samsung, from HTC, from, you know, Motorola? All of these things are coming out because of the fact that the iPhone came out."

Customers claim the iPhone combines every device you need into your pocket, but is still "easy to use."

For the first time, Apple is allowing outside companies to make software for their phone, and at 199 dollars, it's much cheaper than before. Still, investors were lukewarm, Apple stock fell sharply after the announcement.