Why Apple's Faster '3G' iPhone Will Cost The Same $399 (AAPL)

We expect Apple to start selling a new, "3G" iPhone this June, around the same time the company rolls out its "iPhone 2.0" software update and support for third-party iPhone apps. We anticipate the new phone, with faster Internet access, will sell for the same amount as the current 8-gigabyte iPhone -- $399. But exclusive U.S. carrier partner AT&T could tack on an extra $10/month to 3G iPhone service plans.

Good news: Speeding up the iPhone won't break the bank. Research firm iSuppli estimates that the parts to make a phone 3G-capable only cost an extra $17/device. A GPS feature, which some expect Apple to include in the next iPhone, could cost another $3 to $4.

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