Hasta La Gadget!

The short answer: For the time being, yes. But in the future, you may want to upgrade. The long answer after the jump.

The new iPhone 3GS introduces OpenGL ES 2.0 compatible hardware. Its 3D chip—reportedly a PowerVR SGX GPU core integrated in a Samsung chip—is more powerful than the previous generation.

The Graphic Advantage of the 3GS

The new graphic processing unit provides the iPhone with a modern GPU core with 5th-generation shader-driven tile-based deferred rendering. The current 3D graphics unit is 4th-generation tile-based deferred rendering, compatible with OpenGL ES 1.1, but not 2.0.

Simply put, the new GPU is capable of a lot more tricks than the graphics engine in the first and second generation iPhones: Faster frame rates, more detailed and photorealistic shading and lighting, and more polygons.There are also other characteristics that make the iPhone 3GS a better game machine than the iPhone 3G, like a faster CPU and more memory, which allows for larger datasets—bigger worlds—and higher resolution textures.

In other words: The iPhone 3GS has better graphics than the current iPhone 3G, and there is no way around that.

The past vs the future

Just like with computers, this will undoubtedly affect the complexity of applications, games being the most obvious example. With better hardware, developers will create better applications that can do a lot more. Not only have better, more detailed graphics, but also having the capacity to introduce other things, like real time voice chat during games, or physics simulation engines.

This could mean an instant breach between the old iPhones and the new iPhone 3GS. Fortunately for developers and users, the new GPU includes a driver that supports OpenGL ES 1.1. This introduces three possible scenarios. All of these scenarios will happen sooner or later.

• First, developers can choose to develop a single game. That’s the easier, less complex option. Games will use OpenGL ES 1.1 on both machines, and the same graphical assets—same textures, same 3D models, same sprites.

This is happening now: Existing iPhone/touch games will work without any problems in the iPhone 3GS too, looking exactly the same.

• Developers can choose to introduce a game programmed for OpenGL ES 1.1, but taking advantage of the more powerful iPhone 3GS hardware to make it look a bit better and have a faster frame rate. This requires some more effort. Ideally, however, they can also choose to make a game for OpenGL ES 1.1 and 2.0, building both engines in the game so it plays seamlessly for iPhone 3G and iPhone 3GS.

This second scenario will happen soon: Companies like Ngmoco have announced that they are planning to introduce games that will run in all models of iPhone, but will look better in the 3GS.

• Finally, developers can do a 100% OpenGL ES 2.0 game, putting all their resources into this engine and making a great looking game, taking full advantage of the new GS and future hardware. This last part is important, because new hardware will be available and it will be invariably more powerful than the previous generation, allowing for more complex games and applications to appear.

This last scenario won’t happen anytime soon. 40 million devices—including iPod Touch—is a market too big to ignore. But it will happen. There will be a breaking point.

The breaking point

In fact, the breaking point may be the iPhone 3GS itself. By introducing a completely new, modern, shader-based 3D API—which is extensible and will be here for many years to come—Apple has put in place the architecture that will make its iPhone OS product line grow. So whenever the new iPhone or the new iPod touch or the new iPod tablet appears, they will be using OpenGL ES 2.x, and that means that developers will be able to scale up and down their apps with ease, without having to handle both standards.

Then, in a not-so-distant future, a developer will really push the hardware envelope and create a killer app. They will drop the iPhone 2G/3G support and set the iPhone 3GS as the minimum hardware configuration. That day, the divide will happen and everybody will think is normal, just like a five-year-old computer can’t run Crysis or Photoshop CS4.

Because that’s the real key: iPhone OS-based machines are really tiny computers running a version of Mac OS X. So get used to it, because one day people will upgrade their iPhone OS thingie not because new Apple features, but because future killer apps and games. It’s just a good thing nobody keeps the same phone for 5 years.

So you bought your heavily subsidised iPhone 3G with a two-year contract and now you are upset because AT&T wants to charge you full price for the new iPhone 3GS, right? Well, stop whining. You have no arguments.

I have the iPhone 3G—by the way, I paid an extra $500 deposit on top of the price tag because I didn’t have US credit history back then—and I don’t qualify for a subsidised upgrade. I have to finish my contract first, then renew to qualify for the subsidy. If I was in Spain or anywhere else in the world, it will be the same.

But I am not whining. Not because I am a fanboy—I hate AT&T with a passion—but because there are no logical arguments to support the whining.

Sure, it sucks to be me and pay almost-full price for the iPhone 3GS, but that’s how life is. You don’t get a reduced price on your new notebook just because you bought the old model a year ago. You don’t get reduced price on cars, or anything else.

The fact is that the $199/$299 price tag for the iPhone is the result of AT&T’s—or any other carrier, since the situation is the same all around the world—subsidy. Without subsidy—and tying you to a new two year contract—the iPhone is not different from something like the Nokia N97, which is $700 unlocked. Or the contract-free, unsubsidized iPhone 3G itself: The iPhone 3G costs $770 and $877 unlocked for the 8 and 16GB versions.

I hate to defend AT&T or any other carrier. I hate their guts. All of them. Their monthly fees are highway robbery, yes. Their roaming charges are unjustified and just outrageous. And while you—and I—may think that you are entitled to a discount because of those fees, that doesn’t make much sense. I’m afraid that, this time, they are right. And on top of that, your carrier is actually giving you a discount already. Tiny, but compared to the full price of the unsubsidized iPhone, it’s there.

You better get used to this too. These smart phones are really computers. And as applications get more and more complex—especially games—you will want to have the latest and fastest, whether is iPhone, Android, Palm, Windows Mobile, or Blackberry. Just like you upgrade your notebook or desktop computer or video game console.

With all of those brands, the situation will be exactly the same. Without a subsidy, you will keep paying full price for these tiny and wonderful machines. All of them. And that price will stay at around $600 for a long time to come. It happened before, and it’s not going to change.

In other words: Drive through, people. Nothing to see here. If you are not happy, get a Pre. And when Pre 2 appears, jump back to the iPhone. If you must have something new because your ADD has got you tired of last year technology, then get Android, Pre, or whatever. But don’t expect any company to give you discounted hardware when the next generation of Smartypantsphone X comes.

Or better yet: Don’t buy a new phone. Who cares about “new.” Does your iPhone 3G work now? Yes? Then get the free iPhone OS 3.0 and enjoy the speed boost from optimization and the rest of the apps. In this economy, you will do yourself a favor. This is exactly what I am doing.

In the meantime, do the rest of the world a favor and stop whining about what you are entitled to. We don’t live in your pretty me me me ME world.

Already the 3GS is incurring fanboy wrath: For 3G owners not yet eligible for a new phone, the 32GB costs $499 and the 16GB costs $399—and even more without contract. Three tiers of official pricing below:

How do you qualify for the announced pricing? New customer, new line of service, presumably contract renewal, that sort of thing. Update: AT&T confirms that most iPhone 3G owners will be eligible for the good upgrade price after 18 months. Last year, people who owned iPhone Numero Uno got a shoo-in, but apparently that’s not the deal now. To add insult to injury, you’ll even have to pay an $18 upgrade fee to jump from 3G to 3GS.

Here’s the skinny, sent straight to us from AT&T:

iPhone 3G S: Device Pricing
• iPhone 3G S will cost $199 (16GB) and $299 (32GB) for new and qualifying customers.
• If you are not currently eligible for an upgrade but still want iPhone 3G S, early upgrade prices are $399 (16GB) and $499 (32GB)
• No-commitment pricing: $599 (16GB) and $699 (32GB)

iPhone 3G: Device Pricing
• iPhone 3G will cost $99 (8GB) and, while supplies last, $149 (16GB) for new and qualifying customers.
• If you are not currently eligible for an upgrade but still want iPhone 3G, early upgrade prices are $299 (8GB) and, while supplies last, $349 (16GB)
• No-commitment pricing: $499 (8GB) and, while supplies last, $549 (16GB)

Upgrade eligibility varies with each customer, but in general, you will become eligible the longer your tenure in your service agreement. Customers can find out at www.att.com/iPhone or in one of our stores if they are upgrade-eligible.

We received this from reader Alon, who went through the sign-up process:

We also just saw these crazy insane prices on Apple’s website, thanks to commenter mrwizzz, but we can’t see how those numbers are final—at least, we hope to hell they’re not:

For non-qualified customers, including existing AT&T customers who want to upgrade from another phone or replace an iPhone 3G, the price with a new two-year agreement is $499 (8GB), $599 (16GB), or $699 (32GB).

[Wirelessinfo.com; David Chartier on Twitter; other various tips and sources—thanks!]

As expected, the new Apple iPhone 3GS is out. We were right: The photos of the new iPhone were real. Here you have a comprehensive guide to the iPhone 3GS’ new features:

Speed
The “S” stands for “SPEED!” And according to Apple, it is faster launching applications or rendering Web pages.

• The iPhone 3GS has a new processor built-in. Apple claims that it is up to two times faster than the previous generation: Launching messages is 2.1 faster, load the NY Times in Safari: 2.9 times faster. It also consumes less, which has an impact on the improved battery life.

Camera
This is one of the strong points of the iPhone 3GS, according to Apple. They increased the resolution to 3 megapixels, which—judging from the shots they showed-seems much better quality under all conditions.

• 3 Megapixels sensor.
• New camera, with auto focus, auto exposure, and auto white balance.
• You can also tap to focus, changing white balance in the process. That is really neat, if you ask me.
• Special macro and low light modes.
• The camera also supports photo and video geotagging.
• Any application can access all the camera functions now.

• It supports video, 30 frames per second VGA with auto focus, auto white balance, and auto exposure.
• You can trim the video shot just using your finger, then share it via MMS, email, MobileMe and YouTube.

Connectivity
The other part of the “S” is the support for the faster 7.2 Mbps 3G standard, which in theory will deliver data faster to your iPhone.

• Three band UMTS/HSDPA.
• Four band GSM/EDGE.
• Wi-Fi 802.11b/g.
• Bluetooth 2.1 + EDR

Graphics
• The new iPhone 3GS includes new 3D graphics support in hardware. This means faster and more complicated 3D games.
• Same 3.5-inch widescreen multitouch display, but this time it has a fingerprint-resistant oleophobic coating. I wonder if it will withstand a full frontal Shake Shack burger attack.

Design

• Same design as before, including the glossy finish of the back (so much for all the rumors about the matte back.)
• Same size as the old iPhone 3G: 4.5 x 2.4 x 0.48 inches.
• The weight increases a bit: One ounce to 4.8 ounces (135 grams vs 133 grams).
• Greener materials: Arsenic-free glass, BDF-free, Mercury-free LCD.

New special features
• It has a magnetometer, which works with a Compass application, third parties, and it is integrated into the new Google maps app, showing your orientation with a small semitransparent cone.
• Voice control. You can now talk with your iPhone, Enterprise-style. You can instruct it to play similar songs to the one you are playing, or call people.
• Nike + support built in.
• Supports accessibility features, like zooming on text, inverting video, and voice over when you touch whatever text is on screen.

Battery life
• One of the more important new features is the increased battery life.
• According to Apple, you will get up to 12 hours of talk time on 2G and 5 on 3G, with a up to 300 hour standby time.
• On 3G, it will deliver 5 hours of internet use.
• On Wi-Fi, Internet goes up to 9 hours.
• Video playback is 10 hours vs 30 hours for audio.

Price and availability
• $199 for 16GB version.
• $299 for 32GB version.
• Available on June 19th.

If you are “a valued AT&T customer,” AT&T offers an “early iPhone upgrade with a new 2-yr commitment and an $18 upgrade fee.” The price? $399.00 for the 16GB iPhone 3G S and $499.00 for the 32GB iPhone 3G S. It gets worse: For non-qualified customers, including existing AT&T customers who want to upgrade from another phone or replace an iPhone 3G, the price with a new two-year agreement is $499 (8GB), $599 (16GB), or $699 (32GB).

Insane. Way to go AT&T.

MacRumors is claiming that this may be the new iPhone 3G 2009, which looks more or less like the current one, but with a matte finish. I hope it’s true, because I love the dark gun finish.

iPod Observer and MacRumors already posted a photo of part of this case back in February. Back this Wednesday we published photos of what may be original parts for the iPhone 3G 2009, available for sale now by a Chinese wholesaler.

I don’t know if this is going to be its final appearance, but I certainly hope it is. In fact, if it’s real I wish that’s some kind of black rubber. [MacRumors]