Apple, Rim and Palm down on 3G iPhone news

NEW YORK (Reuters) - Shares in Palm fell four percent and Research in Motion shares declined 1 percent on Monday after Apple announced a new iPhone with high-speed wireless Web links.

Apple shares fell 4 percent after it unveiled two new iPhones, priced at $199 (100 pounds) and $299, as investors took their profits after boosting the stock in the lead up to the widely-expected announcement.

Analysts said the relatively affordable prices could hurt rivals and help Apple beat its target to have sold 10 million iPhones by the end of 2008.

"This positions Apple well vis-a-vis other smartphone competitors such as Nokia and Rim," said Shannon Cross of Cross Research. "iPhone is no longer an expensive device. It's now priced at the mass market."

Cross, who expects Apple to have sold 13 million iPhones by the end of 2008, said she expects Apple's stock to recover once investors realize the benefit of the lower prices.

Apple shares were down $7.07 or 3.8 percent at $178.57 on Nasdaq. Shares in Palm were down 29 cents or 4 percent at $6.78 on Nasdaq. Palm sales of its Treo smartphone were hurt last year after the first version of iPhone was announced.

U.S. shares of Research in Motion, maker of BlackBerry, the wildly popular wireless email device, were down $1.54 or 1 percent at $129.87 after Apple said iPhone users would be able to receive push email wirelessly.

The U.S. shares in global cell phone leader Nokia were up 23 cents or less than 1 percent at $26.37 on Monday afternoon.

AT&T, the exclusive U.S. network operator provider of iPhone, saw its shares fall 78 cents to $37.43 after the news.

(Reporting by Sinead Carew)