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The iPhone 4 will also be available in black and white but it will have a more angular look than the current model. It will also be 3mm slimmer than the 3GS. Its screen will be the same size but will be able to show four times the number of pixels than the current version.
A new feature of the iPhone 4 is a camera on the front which will be used for video conferencing, as well as a five megapixel camera at the back which will have a flash. The video conferencing function will be known as FaceTime and currently only works if both users have an iPhone 4. It uses wifi rather than a phone network but in the future, Apple hopes to use mobile networks.
Steve Jobs admitted Apple needs to "work a little bit" with wireless providers to make it "ready for the future".
The battery life of the iPhone 4 has been improved and allows up to seven hours of talk time and six hours of web browsing with mobile networks or 10 hours using wifi.
Apple's new mobile software, called iOS4, was unveiled in April and allows the iPhone to run more than one programme at a time.
The new iPhone will also have more compatibility with the iPad and users will be able to purchase ebooks and use them interchangeably between the two devices.
Will you be rushing out to buy the new iPhone 4 in June? Leave a comment and share your thoughts.