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. The 3G reception could be improved, however. Music and video quality were largely unchanged, but we didn't have many complaints in that department to begin with.
Price may well remain our largest concern. New AT&T customers and most current AT&T customers can buy the iPhone 3G for $199 for the 8GB model and $299 for the 16GB model. If you don't qualify for that price--check your AT&T account to find out--you'll pay $399 and $499 respectively. Either way, you'll pay $15 more per month ($74.99 total) for a plan comparable with the original iPhone ($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.


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 silver mesh behind the speaker--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. The white model is not our cup of tea.

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 (0.48 inch versus 0.46 inch) 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 (5.5 inches by 2.4 inches) remain the same, though it weighs just a tiny bit less (4.7 ounces versus 4.8 ounces).

At 3.5 inches and 480x320 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 that on the first version, though you'll see two new icons from the outset: A Contacts icon takes you directly to your phone book, and the App Store icon opens the iTunes App Store. The display's glass surface, accelerometer feature, touch interface, and secondary menus 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 ringer mute switch rest on the left spine. The Power/sleep button 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 $30 for it (boo!), and Apple made sure the iPhone 3G won't fit in the first iPhone's dock.
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 e-mail account in the main Settings menu, and you'll be taken to the standard list of available e-mail systems. "Microsoft Exchange" and "MobileMe" will appear at the top of the list just above the choice for Gmail. You'll then be prompted to enter the applicable e-mail 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.



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