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By Kent German, CNET.com,Donald Bell, CNET.com
Jul 11, 2008

Just over a year after Apple birthed the first iPhone, the long-awaited, next-generation iPhone 3G has arrived bearing a mildly tweaked design and a load of new features. With access to a faster 3G wireless network, Microsoft exchange server email, support for third-party software from the iPhone Apps store, and improved GPS capabilities, the new handset is the iPhone we've been waiting for, even if it still lacks some basic features.

With the iPhone 3G, Apple appears to have fixed some call-quality performance issues we had with the previous model--in our initial tests, the volume is louder with less background buzz than before. We're worried about battery life--some early reviews indicate that the iPhone 3G lasts only a day--but we'll run full tests over the next couple of days and report our results on this page.

Price may well remain our largest concern. New AT&T customers and most current AT&T customers can buy the iPhone 3G for US$199 for the 8GB model and US$299 for the 16GB model. If you don't qualify for that price--check your AT&T account to find out--you'll pay US$399 and US$499 respectively. Either way, you'll pay US$15 more per month (US$74.99 total) for a plan comparable with the original iPhone (US$59 per month). So while you'll pay less outright to buy the handset, you'll make it up over the course of a standard two-year AT&T contract.

So should you buy an iPhone 3G? If you haven't bought an iPhone yet and have been holding out for a new model, now is the time. If you're a current iPhone owner and you're yearning for a faster cellular network, then you should take the plunge. But if you're an iPhone owner who won't use 3G (or can't; check your coverage at AT&T), then you should stick with your current model. The iPhone 2.0 software update provides exchange server support, third-party apps support, and many new features without the added cost.

The iPhone 3G is now available in New Zealand, Australia, Hong Kong, Japan, Macau, Singapore and the Philippines. Click here to find out where and how much the handset will cost you in Asia.

Design

You'd be hard-pressed to notice any design differences on the front of the iPhone 3G. The minor changes--the silver rim is thinner and the speaker sports silver mesh--are so minimal we didn't notice them for a few hours after picking up the device. Turn the phone on its side, however, and you'll see more changes. Apple has replaced the aluminum silver back with a plastic face in either white or black. The black version (our review model) is attractive, but we admit that we miss the original silver, which shows fewer fingerprints and smudges than the shiny black version. We haven't seen the white model in person, but the thought makes us cringe.

The iPhone 3G's edges are slightly tapered to accommodate the curved back, making the device thinner around its perimeter than its predecessor, but a hair thicker (12.2mm versus 11.6mm) in the gut. Unfortunately, the curved back makes the iPhone 3G wobble slightly if you use it while resting on a table--which quickly becomes annoying. The phone's height and width measurements (139.7mm by 61mm) remain the same except, though it weighs just a tiny bit less (133.2g versus 136g).

At 3.5 inches and 480 x 320 pixels, the display is the same size as its predecessor, but displays slightly more dots per inch (163 vs. 160), and still cranks out brilliant colors, sharp graphics, and fluid movements. The layout of the home screen is identical to the first version's, though you'll see two new icons from the outset: A Contacts icon takes you directly to your phone book and the Apps Store icon opens the iTunes Apps store. The display's glass surface, touch interface, and secondary menu remain the same.

The iPhone's 3G controls reveal a few changes, but none will surprise a current iPhone user. The Home button sits below the display, while the Volume rocker and handset lock switch rest on the left spine. The Power switch rests on top of the phone in its normal position. All controls are now silver instead of black. The SIM card slot hasn't moved either, and Apple now includes a SIM removal tool in the box. The bottom of the iPhone houses the speaker, the microphone, and the charger port, but you'll also notice two tiny screws on either side of the charger jack. Think maybe you'll be able to replace your own battery now? Bummer: The battery is still not user-replaceable, so we don't recommend trying it (although we hear the battery is no longer soldered down).

We're very pleased that the iPhone 3G's 3.5mm headset jack now sits flush with the surface of the phone allowing you to use any 3.5mm headset you like; you're no longer restricted to a headset that can fit in the previous phone's inane recessed jack.

In the box you'll find the syncing cable, a display cleaning cloth, a headset, user documentation, the aforementioned SIM removal tool, and an electrical outlet plug. The plug is pleasantly smaller than on the original iPhone's, but it's compatible with a standard USB cable. On the downside, you don't get a syncing dock. If you want one, you have to shell out US$30 for it (boo!), and Apple made sure the iPhone 3G won't fit in the first iPhone's dock.

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