CUPERTINO, CA — Apple on Tuesday unveiled a new iPhone that is less expensive and faster than the original. The company hopes the change will make the gotta-have geek accessory more accessible for average users.Like its predecessor, the new iPhone will run on AT&T’s cellular network. Unlike its predecessor, it employs 3G technology that offers internet speeds up to twice as fast as the current phone is able to handle. The new 8-gigabyte model will sell for an estimated $199 (with a two-year AT&T contract) — half the price of the current iPhone. A 16-gigabyte model will sell for $299, according to Apple chief Steve Jobs.

The price cut is liable to make the biggest difference to consumers, analysts said.

“There is a very significant audience of consumers who have seen promise of what the iPhone offers but found the price too stiff,” Charles Golvin, an analyst with Forrester Research, told the Washington Post.

Apple and AT&T also hope the new price point will help boost cell-phone sales during a time of economic uncertainty. According to NPD Group, the cell-phone market slipped 22 percent during the first quarter of 2008. If Wall Street’s reaction to the iPhone news is any indication, however, the ploy may not work: Apple’s shared dropped $4.03 in Monday trading.

For its part, AT&T plans to join the cost-cutting fray by subsidizing sales of the new iPhone version (something it refused to do with the original) and offering lower-cost voice and data plans for the device. The company expects the moves to reduce its earnings by 10 to 12 cents per share over the next two years.

Both companies expect the new iPhone to spur a buying frenzy among new and current iPhone fanatics because of the handset’s upgraded functionality. The new version will be thinner than its predecessor, include location-based services and perform automatic updates on software components like email, calendars and contacts. In addition, it will have a longer battery life.

The new iPhone is expected to be available in Apple and AT&T retail stores in the U.S. and 70 other countries. Jobs said Apple expects to sell all 10 million units the company plans to produce this year.