Steve Jobs will today announce the details of the release of Apple’s latest version of the iPhone. Dubbed the iPhone 4G (the previous was called the 3GS, the ‘s’ standing for speed), the latest device is set to be the hottest new gadget this summer. Hitting UK stores later in June, the iPhone 4G signals a statement of intent from Apple and their willingness to create an all out assault on the global smart phone market.

Apple launched the very first iPhone in 2007 to a blizzard of hype and media attention. Having grabbed the headlines, Apple has subsequently attained a lucrative slice of the smart phone market in the USA and Europe, where customers’ are increasingly prepared to spend in excess of £30 per month on a contract.

This represents an important milestone in the development and positioning of the evolution of the iPhone. This could represent what onlookers are describing as an ‘iPod moment’ for the mobile phone. This being the point at which Apple decides proactively to corner a much larger section of the global smart phone market, by producing a range of different iPhone devices. This is a tried and tested market strategy as utilised with the iPod, iPod Nano and iTouch.

The success of the app store, where billions of applications have been downloaded, combined with the need to attract advertisers to the new ‘iAd’ platform, is forcing Apple to execute this strategy in diversification to capture a more mainstream share of the market. Coupled with intensifying competition from Google Android in the USA and the shift in manufacturers such as HTC’s desire to use the platform, Apple are being forced to step up their game. With a number of new devices such as the HTC Wildfire purposefully targeting a mass-market audience later this year, Apple need a robust and clearly defined strategy.

As opposed to releasing a stripped back, cheaper alternative to the iPhone 3GS, Apple are positioning the iPhone 4G at the pinnacle of the smart phone market in order to refine the existing product portfolio. Given the inability of the current iPhone 3G to cope with the new Apple multi-tasking software, there is a possibility that production of both the iPhone 3G and all models of the iPhone 3GS will cease. There are currently two iPhone 3GS products, available with 16GB and 32GB of memory. This will potentially be replaced with an 8GB version of the 3GS, aimed at appealing to a wider audience.

The iPhone 4G will most likely be available as a 32GB and a 64GB version. This will create a distinct gap between the iPhone 4G and the new iPhone 3GS product. The new iPhone 4G will be slightly smaller and slimmer than its previous counterpart, combined with a 5 megapixel camera and flash. The iPhone 4G, similarly to the iPad, will use micro-sim cards and will have a back section made out of glass to vastly increase phone reception. In the UK, the new device will be available through O2, Orange and Vodafone.