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Speculation on the follow-up, the “3G iPhone”, has been building ever since the first generation model was revealed — but things really started getting a bit uproarious over the past few months. Case makers began leaking dimensions for the upcoming phone, supposed “leaked” pictures of the phone were drooled over by nearly ever gadget site on the web, and leaked firmware was picked over with a fine-tooth comb.

Apple today finally announced its next generation crowd pleaser. Apple is looking to address the shortcoming of its first effort this time around and further expand its popularity (Jobs previously stated that he wants 10 million iPhones sold within the first 18 months – it already surpassed the 6 million mark during its first year).

First things firsts – the worse kept secret about the second generation iPhone is its 3G capabilities. The first gen model was widely criticized for its slow EDGE cellular broadband capabilities. Apple is now matching the competition with the iPhone 3G. The iPhone 3G has tapered look with thinner edges, solid metal buttons, a black plastic backing, flush headphone jack, and vastly improved audio.

The faster cellular connectivity of the iPhone 3G allow for download speeds nearly as quick as WiFi and speeds that are 2.5 times as fast as EDGE. The iPhone 3G also sports better battery life than its predecessor. The iPhone 3G now supports 2G talk time of 10 hours, 3G talk time of 5 hours, 7 hours of video, 24 hours of audio, and 5-6 hours of high-speed web browsing.

Apple also confirmed early speculation that price breaks would be in store for the new lineup of iPhones. The Cupertino, California-based company confirmed today that the new 8GB iPhone will be priced at $199 with a new two-year contract when it launches July 11, while the 16GB iPhone (which will be available in white at a later date) will set you back $299 under the same terms.

The iPhone 3G will be rolled out in 22 countries on July 11 (Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Italy, Japan, Mexico, Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, UK and the U.S.).