Larger storage capacities are also likely if a new iPhone model is introduced. While the rumored $99 version is expected to have either 4 gigabytes or 8 gigabytes of memory, tech blog Gizmodo reports that the highest amount of storage could be bumped from 16 gigabytes to 32 gigabytes.
Gizmodo also reported on the first purported screen images of a new iPhone, which suggest the new hardware will include a magnetometer for a compass application, as well as an autofocus for a new and improved built-in camera.
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Apple shares were down 1.9% to $141.97 about three hours before the start of the conference. After the 2008 WWDC, when Jobs introduced the first iPhone 3G, Apple shares rose about 2% before finishing the week down 7%.
On the other hand, when the original iPhone was first announced at the January 2007 MacWorld conference, shares jumped 8.3% on the day of the unveiling and finished the week more than 11% higher.
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