Update: The conference is over, you can watch it at Apples website, here.

The price of the iPhone 3G has dropped from $199 to $99, because they “want to reach more customers”. The conference introduced a lot of new features for iPhoneOS 3.0 as well as a new iPhone.

New Features:
• Tethering: Tethering is indeed coming in iPhoneOS 3.0, without any need for a app, it will run in the background.
• Find my iPhone: Find your lost iPhone, remotely wipe your private data, or send an alert to your phone. Of course, you need to be a MobileMe customer.
• Multimedia Messaging: Seamlessly integrated into SMS.app, you can now send pictures, video, audio, and contacts along with those text messages.
• Parental Controls: Control what you can buy, in the iTunes Store and App Store.
• Voice Controls: Control your music, make calls, and more with voice controls.
• Encrypted iPhone Backups with iTunes.
• YouTube & MobileMe Push: Push your videos from your iPhone to YouTube or MobileMe.
• Renting of TV Shows and Movies: You can now rent and download full movies and tv shows to your iPhone.
• Purchasing of audiobooks: Purchase and listen to audiobooks on your iPhone.
• Picture and video editing: Edit photos, trim video, all on your iPhone/
• Inverting of the screen: Full inverting of the entire UI of the iPhone
• Shake to undo: Made a change you don’t want, just shake to undo!
• In-app zooming and panning: Something you cant read in a AppStore app you downloaded? That’s no problem, you can zoom in!
• Selective deletion and forwarding: You can now delete certain messages, or forward those messages to other people.
• Voice Memos: Record voice memos, sync them back to your computer, send them, or edit them.
• Spotlight: Search your entire iPhone.
• Turn-by-turn directions: Support for turn my turn directions on your iPhone.

iPhone 3GS
• Up to 2x Faster
• Even Faster 3G
• 3.0 Megapixel Auto-Focus Camera
• 30 FPS VGA with audio
• Built-in Digital Compass
• Increased battery life
• 16GB – $199
• 32GB – $299