Apple Inc on Monday unveiled a next-generation iPhone with faster Internet access that will run on advanced wireless networks and sell for as low as $199 -- half the current entry-level price.

Shares of Apple, after strong gains in recent months partly driven by anticipation of the new device, fell 2.2 percent after Chief Executive Steve Jobs indicated the company was going after the mass market with the new model.

"It changes the game for all smart-phone makers," Tim Bajarin, head of consultancy Creative Strategies, said of the price and new features.

New Apple iPhone at $199 [uk.reuters.com]