Apple Inc CEO Steve Jobs announces a number of new languages that the updated iPhone will work with during his keynote speech in San Francisco on Monday. (AP)

San Francisco, June 9 (Reuters): Apple Inc today unveiled a next-generation iPhone with faster Internet access that runs on advanced wireless networks, and cut the price of entry-level units by half.

But shares of Apple, which have gained about 50 per cent in the last three months, fell nearly 4 per cent as chief executive officer Steve Jobs confirmed the new iPhone’s release.

“It’s amazingly zippy,” Jobs said, showing off the highly anticipated encore to the device that melds a mobile phone, iPod media player and Web browser. The phone which will now come in black and white.

The new entry-level iPhone will cost $199 with 8 gigabytes of memory, compared with the $399 price of the older-generation phone with similar memory.

A new device with twice the memory will cost $299 and go on sale in 22 countries on July 11.

The new iPhone will run on third-generation (3G) wireless networks and includes satellite navigation capability, Jobs told developers at a conference in San Francisco, about a year after the original iPhone went on sale.

Apple has sold 6 million iPhones, Jobs said, and analysts say the business could eventually match the size of its Macintosh computer or iPod media player businesses.