Apple's Steve Jobs introduces the 3G iPhone. Source: Reuters

SAN FRANCISCO -- Apple (NASDAQ: AAPL) on Monday unveiled a second-generation iPhone, a sleek black unit with faster Internet access.

"It's amazingly zippy," Apple Chief Executive Steve Jobs said, showing off the highly anticipated encore to the device that melds a mobile phone, iPod media player and Web browser.

The new iPhone will run on third-generation, or 3G, wireless networks and includes satellite navigation capability, Jobs told developers at a conference in San Francisco. The announcement comes about a year after the original iPhone went on sale.

Jobs added that one of the next challenges was "affordability" of the device.

Apple has sold 6 million iPhones, Jobs said, and analysts say the business could eventually match the size of its Macintosh computer or iPod media player businesses.

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