PRODUCT REVIEW
Once You Go iPhone, There's No Going Back

Even after a year, the basic design of Apple's iPhone holds up -- it's as hot and desirable as ever. It's a tiny bit larger but feels noticeably lighter in your hand, and while some have bemoaned the plastic back casing instead of aluminum, the 3G version still feels solid.

iPhone 3G comes in two models -- an 8 GB black version and a 16 GB version that comes in black or white. Aside from the color and storage , the two units are exactly the same.

What's Really New?

The new iPhone 3G uses faster cellular services -- about twice as fast for Internet-related tasks as their EDGE-based predecessors. The speeds vary by region, though, so the measurements are inexact. The downside is the toll 3G speeds place on battery consumption -- running that fast just sucks more juice. Early reports are showing that the new iPhone's battery life isn't quite as good as its predecessor.

Neither iPhone has a user-replaceable battery, so for heavy users, getting through the day could be a stretch. In the U.S., customers can switch their 3G access off, forcing the iPhone 3G to use AT&T's (NYSE: T) EDGE network instead. In addition, U.S. users can turn off location services, push e-mail, Bluetooth , and WiFi . No doubt there will be additional tips from owners around the world as they attempt to eke out longer usage.

Where Are You Now?

The inclusion of built-in GPS is the second biggest new hardware upgrade. It functions beautifully with Google Maps in satellite or street map views, and it's cool to follow yourself around on the map via a little blue dot. Unfortunately, this feature only works when you've got cellular service or WiFi to deliver the Google Maps, making it mainly limited to urban areas.

Still, it's a big leap forward, and the current limitations will likely soon be resolved with other map applications from the new App Store and Apple's iPhone 2.0 software.

The New Software

The new version of the iPhone operating system is also available for previous generation iPhones as an easy upgrade, so the software is new with iPhone 3G but not exclusive to it. Any way you cut it, you've got to give Apple a hand for building a phone that can handle the new software upgrade and still play so well with the new features in 2.0.

Enterprises will be particularly pleased to see Microsoft (Nasdaq: MSFT) Exchange ActiveSync, which will let the iPhone better access corporate e-mail. The software update also provides secure, over-the-air push e-mail, contacts and calendars as well as security features that let IT remotely wipe the contents of lost or stolen iPhones. Plus, it includes Cisco IPsec VPN (virtual private network) for encrypted access to private corporate networks.

Still, iPhone 3G is primarily a consumer-oriented device.

There is one other hardware-focused improvement worth mentioning, and that's the audio. The much-maligned speakerphone is greatly improved -- I can actually use it now when there's a little background noise, and the audio from the ear piece is louder, as well as clearer, at higher volumes.

Another big consumer-focused feature is the built-in 2.0 megapixel camera. It hasn't changed. At all. It's still 2.0 megapixels -- despite the fact that many other phones include better cameras. And, surprisingly, it still won't record video.

The App Store

Apple has done an astounding job of creating an iPhone ecosystem that turns each iPhone into something infinitely customizable and far more than the sum of its parts. To talk about iPhone 3G as a unit separate from Apple's new iTunes App Store is simply silly. The App Store is now as much part of the iPhone as the cellular service it utilizes -- only much more so.

The App Store is basically an online store full of applications created by third-party developers -- but vetted or otherwise approved by Apple. On Friday, there were more than 500 games and applications -- some free, some for a price -- but already that number has grown to more than 800.

It is astoundingly easy to use. In the hands of a teenager and an iTunes account, it could be positively dangerous. Buying a couple of games -- "Super Monkey Ball" and "Cro-Mag Rally," for instance -- will set you back US$20 and kill hours of productivity at the same time. Of course, there are productivity apps galore, like list and task managers, as well as location-sensing tools for traveling through cities, finding restaurants and the like. Oracle even released an iPhone client application -- free -- that can access Oracle's enterprise applications and reports (which are very much not free).

Lower Price, Higher Service Fees

While the iPhone's cost of acquisition has been cut in half, the overall cost for the life of an iPhone 3G has increased -- at least in the U.S. The different carriers Apple has hooked up with internationally each have their own way of pricing their services. In the U.S., AT&T requires a $30 per month unlimited data plan in addition to the voice plan. For the original iPhone, that data plan costs $20. In addition, AT&T has introduced new price points for text messaging -- it's $5 per month for 200 messages, $15 for 1,500, or $20 for unlimited.

While I think the text-messaging pricing is particularly annoying, I must say I'm pleased to see AT&T's 3G service spreading across the nation, and in particular in the Northwest, where I spend most of my time. While the company's investment will be shared by all of its customers -- even those who don't have iPhones --Apple certainly must have applied a bit of pressure to AT&T to get that done in time for the July 11 launch.

Plus, with an iPhone, your basic user is going to be accessing AT&T's Internet and data-handling system far more often they would with most other phones. There's easy access to e-mail, the Web via the brilliant implementation of Apple's Safari browser, YouTube, Google Maps, stock prices and more. This doesn't even take into account the new App Store. So I'm willing to overlook AT&T's little slap in the face on iPhone 3G pricing.

Another Hit for Apple

Overall, Apple took an already great product, made it better -- and then with iPhone 2.0 software, made the old one better, too. What's not to love about that? Perhaps intentionally, Apple gave itself room for improvement. Future versions will no doubt include better cameras or maybe even a forward-facing camera for video conferencing. Apple may also deliver a video recording application -- or let a third-party developer do it. Who knows, we might even one day see a flip iPhone.

So, with iPhone 3G, the bottom line remains the same: iPhone users tend to love their iPhones, despite the seemingly high price. What non-iPhone users don't realize -- and what a good many spouses probably wouldn't understand -- is that if an iPhone owner accidentally dropped their iPhone in the toilet, they'd cry a little, sure, but as they wiped away their tears, they'd be heading toward the nearest Apple or AT&T store to replace it.

As for me, I now have my old iPhone as a backup -- as least for now.