Apple on Monday confirmed nearly every rumor of the last few months and announced the iPhone 3GS. The 32GB model will cost $299 and the 16GB model will cost $199. More details after the jump.The iPhone 3GS. Not the best name ever. Here are the new specs:

32GB and 16GB.

3 megapixel camera with autofocus and video capture (VGA at 30 frames per second).

New digital compass.

Touch-to-focus feature.

Minor ability to edit video on the device.

7.2Mbps HSDPA 3G radio.

Ability to share video via MMS or email.

Same body and enclosure as the current model.

Available June 19 (just a week and a half from now).

This is all good stuff. Not a huge leap forward, but combined with iPhone OS 3.0 features, it is a major new threat in the smartphone market.

The price points combined with the new features and close availability will put some serious hurt on Palm's newly-available Pre. Keep in mind, those are subsidized prices for "new and qualified" customers.

What's disappointing is some of the support from AT&T. AT&T won't be able to support the MMS capabilities until "later this summer". Also, AT&T was not included on a screenshot of carriers that will support data tethering. That's disappointing.

In all, though, the iPhone 3GS is a powerful new entrant in the smartphone segment. Other phones still beat it on a feature-for-feature rundown, but the inclusion of the Apps Store and ridiculous number of applications for the device make it another hit for Apple.