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Features

The iPhone 3G hangs on to all the original iPhone features and throws in a few more, so we'll concentrate on what's new. Lucky for first-gen iPhone owners, most of the impressive array of additions--save 3G support and enhanced GPS--come along with the free 2.0 software update. For more on the organizer features, stocks and weather widgets, YouTube app, notepad, threaded texting and visual voicemail, see our original iPhone review.

Exchange server support
Worker bees worldwide have awaited the iPhone 3G's full support for Microsoft Exchange server. In our tests, adding an Exchange account was ridiculously easy once we had the correct settings from our IT department--simply choose to add a new email account in the main Settings menu, and you'll be taken to the standard list of available email systems. "Microsoft Exchange" and "MobileMe" (we'll try that later) will appear at the top of the list just above the choice for Gmail. You'll then be prompted to enter the applicable email address, domain/username, server, and password. The authentication process took just a couple of minutes. Installing CNET's security certificate posed a bit of a challenge, but we eventually succeeded by mailing the certificate to ourselves through Yahoo Mail.

Once you're ready to go, the iPhone will sync your Outlook email, contacts, and calendar. Be advised that while the iPhone can support multiple POP3 accounts at once (two Yahoo accounts, for instance), it syncs with only one Exchange server and, worse, will only with one calendar or contacts list at a time. If you have a separate personal calendar, your work calendar will replace it once you start the sync. (You'll be notified before it happens.)

As an alternative, though, you can sync email without syncing your contacts and calendar. Also, you can keep work and personal email accounts open at the same time, although you'll have to switch between the two (unlike on a Blackberry). MobileMe is another way to work around this restriction, but we'll talk about the later.

When using Wi-Fi, email syncing went quickly. As new messages came in, the iPhone registered them almost immediately. It seemed to bog down when we received a large clump of messages at one time, however. In those cases, we had to update the phone manually. In one instance, an update took a couple of minutes--long enough that we thought the phone had frozen. We also noticed that if the iPhone loses its Wi-Fi connection, the syncing is interrupted even if the phone has 3G service. Even with these caveats, however, the experience was satisfactory. The Syncing via 3G was just as quick; if there was a difference, we didn't notice it.

When we deleted a message on our phone, the same email vanished on our PC just a couple of seconds later. Messages deleted on the PC took longer to disappear from the phone; typically, we had to do a manual update to see them gone. Messages deleted on the phone will show up in your PC's Recycle Bin and vice versa.

You can access all folders in your in-box and move messages from your in-box to a specific folder. You can't search for messages, but you can call a contact if they include their phone number in their email. Opening attachments worked as promised, and we like how the software update now lets you save attached images directly to your photo gallery simply by tapping the image. To email photos, you will need to do so in the traditional manner by opening the photo, selecting the email option, and choosing which account you'd like to send from.

Though according to AT&T, using Exchange server support on the iPhone 3G will require the business data plan (the one that costs US$45 per month), we're not sure how AT&T will enforce this rule. The iPhone does not prompt you of this restriction in any way.

Mobile Me
The iPhone 3G supports Apple's new MobileMe service, which synchronizes from Mac's Mail, Address Book, and iCal applications: Contacts, calendar appointments, email messages, photos, and browser bookmarks. One advantage of MobileMe is that it allows you to sync personal and work calendars, and contacts. We'll test MobileMe on the phone once we get it up and running.

Apps store
When you select the iTunes Store, you're taken to the Apps Store main menu, which somewhat resembles the mobile iTunes store in design. You search applications by name and category and you can browse through the lists of Featured applications or the Top 25. There also is a feature for seeing if your purchased applications have any updates.

We purchased a few apps for the iPhone. Downloads over Wi-Fi were pretty quick; most apps took just a few seconds, but keep in mind it will vary by the size of the app. Though you can purchase iTunes songs wirelessly only through a Wi-Fi connection, you can download applications over a 3G network and even over EDGE (if 3G isn't available). Downloads over 3G took about the same time as they did over Wi-Fi, give or take a few seconds, but apps over EDGE are quite pokey. We also purchased applications through the online iTunes (7.7) store. We downloaded Super Monkey Ball and then synced it to our phone--a new applications tab appears under the iPhone menu. The process was quick and painless. What's more, navigation through the online apps store is easy.

What's most remarkable about the online applications store is the sheer breadth of titles available. As of this writing, there are 27 pages available in a staggering range of categories. If there is one thing about the software update that changes the original iPhone for the better, it's the Apps Store--even if not all the applications are keepers. Of course, before you get carried away, remember that some apps are free but others will cost you.

3G
The iPhone 3G's support for AT&T's wireless UMTS/HSDPA wireless broadband network comes too late for original iPhone buyers who grew frustrated with the slow Web surfing speeds over the 2.5G EDGE network, but it makes for a much more satisfying second-generation device. Safari consistently delivered speeds of about 300Kbps to 500Kbps and even faster at times in our tests. That's a huge jump over the typical EDGE speeds of less than 100Kbps. Web pages that used to take minutes took only seconds to load via 3G. We'll do more scientific comparison Web testing (3G versus EDGE) over the next few days and post the results on our review. In the meantime, check out this Prizefight.

Of course, the 3G experience is all relative. Your experience will depend on many factors including 3G coverage in your area, the number of people on the network at a given time, and the kind of pages you're trying to access--as a rule, busier pages will load more slowly. Also, it's absolutely essential that you test 3G coverage in your area using another AT&T 3G handset before buying the new iPhone. AT&T can give you guidance, but there's no substitute for real-world experience. Outside of the United States, the iPhone's tri-band (850/1900/2100) UMTS/HSDPA support will deliver 3G coverage around the world. One final point is that 3G will suck juice from your phone, so you should consider switching it off (there's an options in the Settings menu) when you're not using it. At that point, the handset will default to EDGE.

GPS
While the current iPhone location services find your position by triangulating among nearby cell phone towers and satellites, the iPhone 3G uses Assisted GPS supplemented by satellites, which better pinpoints your location. It also offers live tracking so that you can monitor your progress as you drive (or walk) along. We'll expand more on the tracking feature as we test it. Even with these additions, however, the iPhone's GPS features can't compete with a standalone GPS device. Google Maps provide point-to-point directions on the iPhone 3G, but the phone doesn't support turn-by-turn directions in real time, and it's unclear whether that capability will come later from third-party applications. Apple's SDK prohibits location-based services "designed or marketed for real-time route guidance," but that doesn't mean we'll never see them.

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