Source Reviews and pictures : Engadget
It's hard to think of any other device that's enjoyed the level of exposure and hype that Apple found in the launch of the first iPhone. Who could forget it? Everyone got to be a gadget nerd for a day; even those completely disinterested in technology seemed to come down with iPhone fever. But the original device was still far from perfect: its limited capabilities (especially in the 3G department), high price of entry, and the small number of countries in which it was available kept many potential buyers sidelined. Until now -- or so Apple hopes.
The wireless industry is a notoriously tough nut to crack, and it's become pretty clear that the first iPhone wasn't about total domination so much as priming the market and making a good first impression with some very dissatisfied cellphone users. With the iPhone 3G, though, Apple's playing for keeps. Not only is this iPhone's Exchange enterprise support aiming straight for the heart of the business market, but the long-awaited 3rd party application support and App Store means it's no longer just a device, but a viable computing platform. And its 3G network compatibility finally makes the iPhone welcome the world over, especially after Cupertino decided to ditch its non-traditional carrier partnerships in favor of dropping the handset price dramatically. $200? We're still a little stunned.
So now that Apple finally stands poised for an all out war on cellphone-makers everywhere, will the iPhone 3G stand up to the competition -- and higher expectations than ever? Read on for our full review.
Update: Updated with some more battery tests. So far we're not that impressed.

Gallery: iPhone 3G review - hardware

The hardware
No one will have any trouble recognizing the new device from its face -- it's essentially identical to the original iPhone. Thankfully, the bright, high quality, high resolution 480 x 320 3.5-inch display that's just so easy to love, hasn't been changed a bit. Unfortunately, it's still every bit as much a magnet for smudges and fingerprints -- in fact, even more so now that the rear of the device has dropped its chic matte aluminum in favor of black (or white, optional on the 16GB model) plastic. Hey, at least now it's more symmetrical.
The move to plastic seemed almost inevitable now that the iPhone has so many radios, frequencies, and antenna needs (GSM, EDGE, HSDPA, WiFi, Bluetooth, GPS), but while we do prefer the original aluminum, the plastic does feel pretty solid and not at all flimsy, which is more than we can say for a hell of a lot of handsets. There's no doubt about the fact that we'd have preferred a matte or soft-touch finish to the glossy plastic, but that's all a matter of taste.

The body of the phone is slightly thicker at its center than its predecessor, although the edges are tapered and thinner than before, which is always a good way to make a device feel smaller than it actually is. (Palm learned this a long time ago.) There are a couple downsides to the body shape, though: first, when you're tapping off-center on a hard, flat surface, the phone wobbles (but only a little, oh well).

Second, the new shape means you won't be using it in your original device's dock. This really wouldn't be all that bad if Apple included a dock with the 3G like they did with the first iPhone, but now they want you to buy that separately. Did we mention they're asking $30 for it? Way lame. That absurdly small power adapter kind of makes up for it, but only a little.
One thing Apple was keen to talk up is the vastly improved call quality of the iPhone 3G. Those in the know understand that 3G call quality is often better than regular GSM -- but it turns out Apple made a huge improvement on both sides. iPhone 3G calls made over 3G and GSM both sounded significantly better than calls made on the original iPhone. If you're upgrading your device iPhone you may not necessarily notice it, but on a side by side it was pretty obvious.
Of course, call quality most often depends on coverage, and coverage varies between 3G and GSM networks depending on where you are. 3G calling also requires more battery power. Where are we going with this? Well, despite many of the painstaking measures Apple's taken to preserve battery power, the iPhone 3G doesn't do any real time signal detection to help determine whether you currently have better 3G or GSM voice coverage. If you suspect you might get better coverage either on or off 3G, it's up to you to dig down through a few settings menus to flip the switch. Not a deal breaker by any means, but it'd make for a welcome fix.
We're still working on our battery testing (which can take a number of days, so we'll post supplementally); Apple's numbers on the iPhone peg it at 10 / 5 hours talk on GSM / 3G (respectively), 5 hours 3G data, 6 hours WiFi, 24 hours music and 7 hours video. So far, though, we're guardedly underwhelmed.
Last year we raved over the original iPhone's "Herculean" ability to play video for up to 9-hours on a single charge. Repeating a near identical test from last year (and also mimicking Apple's own testing methods), we managed just 5 hours and 24 minutes of continuous playback of our 320 x 176, H.264 video encoded at 127kbps. (Our tests were conducted with the screen at half brightness, half volume, with Apple's stock headphones, WiFi on, but not connected, Bluetooth off, 3G and cellular radios on, and location services on -- pretty much all the defaults.)
Add our result to Mossy's disappointing battery test for 3G voice and we're already feeling nostalgic for our long-lasting first-generation friend. Granted, our battery might require some breaking in (it's been discharged and recharged fully only once) so we'll continue testing and get back to you on the quick with our full suite of results using multiple phones.
There have been a number of other fixes to better the device as well. For example, the phone now has two proximity sensors to better detect when it's held to your ear. We also found that while the camera was essentially identical, we were getting images that were ever so slightly sharper and crisper than the original iPhone on 1.1.4 (check it out below). Still, knowing that HTC's Touch Diamond -- which features a 3.2 megapixel sensor and mechanical autofocus -- could pack such a great camera in an even smaller form factor than the iPhone's left us pining for something a bit more than the same 2 megapixels from the first time around.

What we're probably the most excited about, though, is that two of our biggest hardware-related gripes from the original device have finally been addressed: first, the headphone jack is now flush, which means any standard (3.5mm) headphones will work in the iPhone without the need for an adapter. The new jack has a solid, confidence-inspiring feel that won't leave you worrying about damaging the device or your headphones. To this day we still have no clue why Apple pushed the jack in -- it was kind of funny hearing Steve pitch the flush jack as a feature at WWDC. It's the simple things, you know?
Second, the speaker volume has been jacked up significantly, giving your calls (or music) a much more workable volume level if you're not blessed with superhuman hearing. It's not the loudest speaker we've ever heard on a device, and unlike many Nokia Nseries phones, it's still mono. But it's definitely a step up compared to the first iPhone, which was not only quiet, but also seemed to distort at much lower volumes.
Speed and location
At the end of the day, it's the 3G data that's important enough to become part of the new iPhone's namesake. Speed testing the iPhone 3G hasn't been disappointing in the slightest. We've seen speeds between 300 - 500Kbps in the US (roughly equivalent of other HSDPA devices we've tested), and in networks abroad where the data rates are even faster, we've gotten consistent data rates of over 700-800Kbps. It's pretty clear the iPhone 3G isn't hitting hardware limits right now, so much of what you can prepare to see in terms of speed in the US will depend directly on reception with AT&T's network -- which doesn't have the most outstanding reputation, nor the broadest 3G rollout.
Interestingly, in one test, our iPhone 3G had worse reception on AT&T than a Nokia N78, yet managed speeds of over 100Kbps faster. So ultimately, where 3G coverage is decent, you should be seeing speeds that will no longer have you tearing your eyes out, as was so often the case with little mister sometimes-takes-minutes-to-load-a-small-page first-gen iPhone.
GPS acquisition has also been surprisingly fast for a cellphone. AGPS devices use traditional GPS receivers, but help speed up location acquisition and accuracy by using cellphone towers to triangulate. As far as we know, the iPhone 3G is the only device out right now that not only has AGPS, but takes advantage of Skyhook's proprietary WiFi-based location system, giving it a total of three ways to help find where you're at. We were able to acquire GPS in as little as a second or two, although depending on your location and reception, you might see that take longer. It's important to note, though, that the iPhone's was clearly intended to be a location-aware smartphone -- not a dedicated GPS device. There's a big difference.
That said, there's an enormous amount of interest by people hoping they can add one more to the pile of devices their iPhone has taken over for. It's pretty clear why people might want the iPhone 3G to replace their car's dedicated GPS nav, too. It's not just a location-aware device with a large, bright screen -- it's also connected (with service you're already paying for), thus able to get traffic updates, routing information, and so on. The Google Maps app doesn't provide turn by turn route guidance, though, so while it does provide directions, you can only use it as a stand-in -- and not as a full replacement -- for a proper GPS device. This problem might be solved later by some intrepid 3rd party developer (like, say, TomTom or Telenav), but there's been some confusion as to whether this might actually happen, and what Apple's official stance on GPS nav actually is. And even if this GPS software does eventually come out, the speaker on the iPhone 3G simply won't be loud enough to be heard over most road noise, so you'd also have to make use of a line-out. In other words, don't sell your GPS device just yet, okay?
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