It’s not the groundbreaking, industry-changing event that the original iPhone was. But the iPhone 3G is a worthy upgrade to Apple’s smartphone, and fixes a few flaws that kept many people from buying the first version.

The addition of fast 3G wireless data, GPS and a more flexible, extensible operating system mean the iPhone is now entirely competitive with almost every other smartphone on the market. And its new, lower purchase price will remove the final obstacle to purchase for many people. In short, this phone is about to become very, very popular, as it deserves to be.

Physically, the phone is nearly identical to the previous generation. It measures 2.4 x 4.5 x 0.4 inches, and weighs 4.8 ounces, making it just 0.1 inch wider and 0.3 ounces lighter than the iPhone 1.0. It feels substantially thinner, thanks to tapered edges, which make it sit more comfortably in the hand. Instead of a silver aluminum back, the new iPhone has a plastic backing, available in either glossy black or shiny, iMac white. The screen and 2-megapixel camera are identical to those in the older iPhone, but the external speakers are much improved. Call quality was noticeably clearer in our initial tests.

Bottom Line

If you already have an iPhone (first generation) or an iPod Touch, this is not a necessary upgrade. Instead, upgrade the operating system via iTunes, and you’ll be able to take advantage of the App Store and all the software it contains.

But if you don’t have an iPhone, now is a very good time to buy one. The price cut is worth less than Apple’s ads would have you believe, since the $200 price ($300 for the 16GB version) is coupled with a two-year cellular service contract. In the U.S., AT&T’s iPhone 3G contract will cost $10 more than the old version did ($70 for a package with unlimited data usage and the minimum number of minutes, 450 per month), pretty much erasing any price difference.

But let’s put this in context: the handset and service pricing are extremely competitive with other smartphones (including a wide variety of iPhone-like iClones). While the iPhone still has some notable shortcomings — no replaceable battery, a mere 2 megapixels in the camera, no video recording capabilities — it is an impressively useful, well-thought-out device, and comes at a reasonable price.

Add in the growing array of software in the iTunes App Store, and you have a device that will get more useful, not less useful, with time. You can’t say that about most other phones.

Specs: Apple iPhone 3G
3G wireless data
WiFi
Bluetooth
GPS
2-megapixel camera
iPhone 2.0 OS
3.5-inch multi-touch LCD
320 x 480 pixel display

$200 (8GB) or $300 (16GB), with two-year AT&T contract (prices and carriers will vary in other countries)

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