iPhone OS 3.0 will be available for free to all iPhone users (3G and original). Available worldwide on June 17th.
The new version of the iPhone -- iPhone 3GS. S stands for speed.
Now featuers 3MP auto-focus camera. Tap on the part of the photo you want to focus, and it automatically does so.
Can be controlled by voice and talk back to its owner about the music it is playing.
Camera application has a switch that lets you swap between still photo to video mode. 30FPS, VGA with audio, auto-focus, white balance etc
Improved battery life. Now up to 9 hrs of internet surfing, 10 hrs of video, 30 hrs of audio, 12 hrs of 2G talk-time, 5 hrs of 3G talk-time.
The iPhone 3GS will be available on June 19th in 16Gb ($199 in the US) and 32Gb ($299 in the US) versions. The old 3G will stay - 8Gb version only - at a much reduced cost ($99 in the US).