Apple Inc.’s latest version of its iPhone, the 3GS.

AP

PROVIDENCE — Apparently the lure of new gadgetry wins even in tough economic times.

People lined up outside the Apple Store at Providence Place mall Friday to be among the first to purchase the latest version of the popular iPhone. At midday, about 40 people were queued up as they waited to spend $200 or more.

Apple Inc. released the new iPhone 3G S nationwide Friday, with its 211 retail stores opening up at 7 a.m. in anticipation of high demand, according to news reports. The new phone, which is priced much lower than the original version that premiered in 2007, offers a video camera and more memory.

According to Apple’s Web site, the price of the phone starts about $199 with 16 gigabytes of memory and increases to approximately $299 for one with 32 gigabytes of memory.

When the iPhone first hit the market with its colorful, easy-to-use touch screen, customers had to pay about $499 for a 4-gigabyte version and $599 for 8 gigabytes.

Initial reports indicate that the newest iPhone is attracting fans, but not to the same frenzy as their first introduction to the market in 2007 when people camped out overnight to get in line. Celebrities were quick to flaunt theirs if they were lucky enough to snag one.

AT&T provides the cell phone network for iPhones and on Friday the new phones were available in all AT&T stores as well Apple retailers. No sales figures were being released Friday, but Kate MacKinnon, regional spokesperson for AT&T, said that sales were brisk.

The AT&T store in Providence Place opened at 7 a.m. just like its Apple partner, and there were people who had been waiting for about an hour, she said.

“It’s really the fastest, most powerful phone out there,” MacKinnon said. “People are excited to get it and we’re excited to be selling it.”

Representatives for Apple did not return calls for comment. But news reports indicate that the orderly line at Providence Place was replicated in shopping venues across the country.

In Arlington, Va., Kevin Meaves, 34, was in a line of about 100 people waiting outside the Apple store there. “I worship the Apple god,” Meaves said. “I have all of Apple’s products and every time something new, better, faster and different comes out I have to have it.”

The latest iPhone will face increasingly sophisticated rivals including Palm Inc.’s new Pre phone and Research In Motion Ltd.’s BlackBerry Tour.

–– With Wire Reports

bpoliche@projo.com