By Jim Reed
Newsbeat technology reporter
iPhone 2.0 looks the same but has 3G and GPS - it's also cheaper
After months of rumour and speculation, Apple finally took the covers off a second version of the iPhone on Monday night.
British customers will still be forced to use the O2 network, at least for the moment.
But Apple is cutting the price of the new handset.
It will go on sale from Apple, O2 and Carphone Warehouse stores on 11 July for £99 on a £30 per month contract. The up-front fee drops to zero on a £45 per month contract and above.
It comes with faster 3G internet access and satellite navigation for the first time.
But Apple isn't the only game in town.
Rival phone makers have been rushing out their own touchscreen models, while internet giant Google is developing an operating system that might make iPhone-like technology available for free.
Here's Newsbeat's guide to the main iPhone challengers.
Samsung has been rushing touchscreen models onto the market for the last year.
The Tocco is smaller than an iPhone and free on most phone tariffs
Its latest, the Tocco, is smaller and thinner than an iPhone.
A new interface lets you drag and drop applications - or widgets - onto the main screen in a similar way to Apple's handset.
It comes with a five megapixel camera, a 2.8in display and works with the latest high-speed HSDPA data networks.
While the iPhone is likely to set you back hard-earned cash, Samsung's new phone is free on most monthly tariffs.
While other major phone makers experiment with touch interfaces, Taiwanese-based HTC has been doing it for years.
The HTC Diamond has fast HSDPA access and a new 3D interface
A range of basic touchscreen phones are already on sale based on Microsoft's Windows Mobile operating system.
Current top of the range model, the HTC Touch Cruise, supports 3G networks and built-in GPS satellite navigation.
Its successor, the HTC Diamond, will hit the shelves later this month with a sharper screen, faster HSDPA access and a new 3D interface.
LG was the first rival phone maker to seriously jump on the touch screen bandwagon with its Viewty model.
Its latest model, the LG-KF750 or Secret, gives you a full touchscreen and a slide out keypad.
Like the iPhone, it comes with an accelerometer for automatic screen rotation and support for the latest 3G networks.
At just 11.8mm, the black, carbon fibre casing is slimmer than the iPhone.
Vodafone is the first network in the UK to stock the Secret, offering it for free on price plans of £35 per month or more.
Sony Ericsson's first mainstream touchscreen phone, the Xperia X1, will go on sale in the autumn.
Sony's Xperia X1 has a 3in touch screen - it's out in the autumn
Unlike the iPhone, it also comes with a full QWERTY keyboard that slides out from underneath the screen.
The new phone swaps the Symbian operating system for the latest version of Windows Mobile.
Other features include a large three inch touchscreen, 3.2 megapixel video camera and room for a chunky 32GB worth of memory.
Nokia sells more phones in a week than Apple has sold in the last 10 months.
The Finnish mobile giant has already experimented with niche touchscreen models.
Its first mainstream touch handsets are expected to hits the shelves by the end of the year.
Leaked pictures of a prototype device, codenamed the Tube, have already made it on to the web.
The handset is said to come with a widescreen display, handwriting recognition and built-in GPS.
The biggest name in the business smartphone market is preparing to launch a couple of consumer-friendly models.
The Blackberry Bold has 3G and GPS, as well as a sharper screen
The BlackBerry Bold, due this summer, looks similar to a traditional BlackBerry smartphone.
However, it also boasts features that put it on a similar level to Apple's product.
It has support for 3G, full GPS satellite navigation, as well as a bigger, sharper screen,
The BlackBerry Thunder, pencilled in for launch before Christmas, ditches the QWERTY keyboard for a touchscreen and four menu keys.
Search engine giant Google has no plans to make its own handsets but it has joined up with 34 other companies to develop a new operating system for mobiles.
Android will allow applications that work on different phones
The platform, called Android, will allow software companies to make applications that work on different brands of phone.
Google recently demonstrated a new prototype with touch screen menus and a magnifying tool that zooms in on web pages just like Apple's iPhone browser.
The first handsets built around the new system are expected to go on sale by the end of the year from manufacturers like Samsung, HTC and LG.