So, like a shark, Apple (AAPL) must keep moving. This week, it is introducing two new products designed to consolidate and increase its position as the leader in this new generation of hand-held computers. I’ve been testing both and I like them a lot, with some minor caveats.

One of the new products is a refreshed model of the iPhone itself, called the iPhone 3G S. It looks the same, but offers more speed, more memory, more battery life, and a few new features, including video recording and a better camera for still photos.

The second is OS 3.0, the third version of the iPhone’s operating system, which comes on the 3G S and also can be installed on all prior iPhones and Touches. It includes a much longer list of added features, some innovative and some long overdue catch-ups to other phones. These include such widely requested capabilities as cut, copy and paste; systemwide searching; a wider virtual keyboard; and a feature called MMS that allows users to send photos and videos directly to other phones without using email.

Apple last week also made a bold business move to complement these new products. It decided to keep making the current model, the iPhone 3G, and to slash its price by 50%, to $99. That’s an unheard-of price tag for a pocket computer of this power and versatility, and gives millions of additional consumers a reason to choose the iPhone instead of a competitor.

In my tests, both the new phone and the new operating system performed well, with a few small exceptions. I believe the two strengthen the iPhone platform, make it likely the iPhone will continue to attract scads of apps, and are good for consumers.

But I also regard these changes as more evolutionary than revolutionary, and I don’t think this latest iPhone is as compelling an upgrade for the average user as the 3G model was last year for owners of the original 2007 iPhone.

Current iPhone owners can get an improved product by merely sticking with their existing phones and upgrading to the feature-laden new operating system, which is free (it costs $10 for iPod Touch owners), rather than shelling out at least $199 for the new iPhone 3G S. And many new iPhone buyers can opt for the $99 3G model, which is not only cheaper, but also greatly improved by the new OS 3.0.

On the other hand, power users will crave the new model’s much-better performance, battery life, storage and other features. And some will want the new model because, unlike the current model, it’s capable of handling a new cellular network feature that, in the next few years, will offer double the current data speeds.

The new, free operating system is available for download starting June 17. The iPhone 3G S will go on sale June 19 for $199 for a version with 16 gigabytes of memory, and $299 for 32 gigabytes of memory. Those memory capacities are double the amounts offered on the previous model last year at the same prices, and far exceed the built-in memory on most competing smart phones.

These prices are for new U.S. customers on the AT&T network, plus current owners who are eligible for what AT&T (T) calls a “standard” upgrade. If you already own an older iPhone, you could pay $200 more to upgrade, depending on how far along you are in your two-year service contract and how much you spend monthly. But AT&T, stung by criticism in recent days, has just decided to offer the lower, new-customer prices at launch to iPhone 3G owners eligible for upgrades at any time up to Sept. 30 of this year, even if they were originally told they’d have to pay the $200 premium.

Before I detail the new features and how they worked in my tests, let me state up-front what the new iPhone and its new operating system don’t deliver. The iPhone still lacks a physical keyboard. It still can’t run more than one third-party app at a time, as the Pre does. Its otherwise excellent Web browser still can’t play videos created in Adobe’s Flash software, which is widely used on the Web. And it still isn’t available on any U.S. carrier besides AT&T.

Also, AT&T won’t enable MMS until late this summer, even though dozens of other iPhone carriers in other countries are doing so immediately. And AT&T hasn’t set a date by which it will offer tethering, a new iPhone feature that allows the device to be used as a modem for a laptop. Other carriers in other countries are allowing this right away.

Here’s a rundown of the most important new features of both the new hardware and software, and how they performed in my tests.

The iPhone 3G S

Speed: To me, this is the most important feature of the new iPhone 3G S. In fact, the “S” in the name stands for speed. During my week of testing, the new model proved dramatically snappier in every way than my iPhone 3G. Its processor is 50% faster than in the prior model, and it sports a new graphics chip.

Applications opened much more quickly. Web pages loaded far faster. The camera was ready to use almost instantly. And I never once saw the occasional, annoying iPhone behavior where you strike a key while typing and it sits there, seemingly stuck, before you can continue.

Cellular-data speeds were about the same, but in repeated testing on different Wi-Fi networks, the 3G S racked up speeds 30% to 50% faster than on the 3G running at the same time on the same networks.

Battery Life: On my 3G iPhone, I usually could make it through the day, but it was often a close call, with the battery indicator winding up in the red. By contrast, the new model did much better, never hitting the red zone and rarely requiring interim charging at the office or in the car, even though, because I was testing it, I was pounding it much harder than usual, making more voice calls, playing lots of videos and music, trying numerous apps, constantly downloading email from two accounts, and syncing two calendars over the air.

Apple claims about the same talk time for the new model as on the old, and about the same Web-surfing time over the cellular network. But it says the 3G S gets about 50% more battery life when playing videos or surfing the Internet over Wi-Fi and 25% more time — an astounding 30 hours — for continuous music playback.

Memory: With the new 32-gigabyte model, I was able to store over 3,000 songs, more than 1,600 photos, 74 videos, 67 applications, 400 emails, nearly 1,000 contacts, months of calendar data, and dozens of documents, and still have 5 gigabytes left over—more than most phones offer out of the box.

Camera: The new model’s camera has a 3 megapixel resolution, up from 2 megapixels, and has autofocus and a feature that lets you tap the screen to change the focus to an object or person in the background of a shot. It still lacks zoom or a flash, though it does better in low light. It also has a macro feature for close-up shots. In my tests, all of this worked, but I didn’t think the pictures it took were dramatically better than those on the old model, and it can’t compete with phones like Nokia’s (NOK) new $700 N97, which has a 5-megapixel camera with zoom.

Video: The new video recorder worked well, even in low light, and lets you post videos directly to YouTube, among other places. You can also trim your videos right on the phone. This all worked well, but the videos aren’t high definition, and pale in comparison to those on the latest HD model of the popular $229 Flip pocket camcorder.

Voice Control: By simply holding down the new iPhone’s home button, you can dial contacts and control music playback by uttering voice commands. The phone will even tell you which song is playing. Like most voice-recognition systems, this one isn’t perfect. But it worked most of the time.

Compass: I don’t consider this important for most users, but it did work when I was walking or driving. It can orient maps in the direction you’re heading.

Small Touches: You can optionally turn on a new battery indicator that shows a precise percentage of battery life left. The screen has a new coating that resists oil and grease from fingerprints.

Downsides: The new phone crashed on me twice during my tests. Once, the voice-control feature killed the sound on the built-in iPod, requiring a reboot. But I couldn’t replicate this problem. Another time, the phone froze while downloading a TV show. Apple blamed this on a prerelease server issue, and it didn’t happen again.

iPhone Operating System 3.0

Copy, Cut and Paste: Apple is late with this common feature, but it’s the best implementation I’ve seen on a phone. In a text page, you just double tap on a word, and it is selected with little handles around it that let you expand or contract the selected area. Then, you just click on a copy icon that pops up over the selection. To paste, you tap elsewhere in the page, or even in another app, and a paste icon pops up. Click that icon, and the selected text is pasted in. It worked well in all my tests.

The feature works a bit differently for some Web pages, where you hold down your finger over an area and it selects a whole block of text, like a paragraph, but still has the handles that allow adjusting the selection. It also allows copying and pasting photos. You can also just select a word or a section or a whole page of text and delete it. And if you want to undo a paste, just shake the phone.

Some Web pages and third-party apps don’t yet support this feature, but most do.

Search: Before, you could search only in the Contacts app. Now, there are search features in Mail, Calendar, the built-in iPod and Notes. And there is a way to search the whole phone at once. You just hit the home button, slowly, twice, and a special search screen appears. Type in any phrase, and it brings up every instance in multiple apps.

This is another catch-up feature, but it works well. For instance, when I searched for the word “Phil,” it brought up songs by Phil Collins, a note about Philadelphia, calendar items mentioning people named Phil or Phillips, emails to or from people with those names, and contacts for people named Phil or Phillips.

In email, the search function will even find messages that aren’t on your phone but that are stored on the servers of certain email services. For instance, I was able to almost instantly find emails from two years ago stored on Google’s (GOOG) Gmail.

One downside — in email, search looks for words only in email headers, not in the body of the messages.

Landscape Keyboard: In older iPods, the only built-in program that supported a wider, landscape keyboard, which is better for thumb typing, was the Web browser. Now, you can turn the phone horizontally and use a landscape keyboard in the Mail, Messages and Notes programs as well.

Find My iPhone: If you belong to Apple’s $99 a year MobileMe service, you can now locate a lost iPhone on a map on any computer, send the iPhone a message saying how to return it to you, and cause it to emit a beep, even if the sound is turned off. I tested this and it worked well. You can even remotely wipe all your data off the phone.

Voice Memos: The OS includes a Voice Memo app that lets you dictate reminders or other messages, and then edit and email them. I found it worked well.

Navigation: Another catch-up feature, turn-by-turn navigation with voice prompts, is also now supported. I tested this with a third-party app called Gokivo, and it did OK, though the developer admits to a prerelease bug I encountered.

Auto-Authentication: In the new OS, the iPhone can remember your log-in credentials for commercial Wi-Fi hotspot services, so you don’t have to enter them again and again. Unfortunately, in my tests with the AT&T Wi-Fi service, this failed repeatedly in several Starbucks (SBUX) shops. Apple blames a glitch in my prerelease phone’s SIM card.

Push Notification: To make up for its lack of multitasking, the new iPhone OS has a feature where third-party apps can notify you of new events, like a sports score, or a new invitation to an online game. I tried this with a game called TapTap Revenge, and it worked fine.

Stocks: The built-in stock application now has much more detailed data, including market cap, news headlines and price/earnings ratio for each stock.

MMS and Tethering: I couldn’t test these useful features because my tests were all done on AT&T, which hasn’t rolled them out.

Minor Touches: You can now move an icon among screens with one continuous motion, instead of stopping at each screen. And there are two more screens to house icons. You can finally synchronize Notes with your PC or Mac. You also can now maintain both calendars and contacts synced wirelessly with online services and those synced via cable with your computer. And you can play games and transfer files wirelessly over Bluetooth with other iPods or Touches that are nearby.

Bottom Line: Both the new iPhone and iPhone OS are packed with features that make a great product even better. But, for many users, the software may be enough of a boost to keep them from buying the new model.

Find all of Walt Mossberg’s columns and videos online, free, at the All Things Digital Web site, walt.allthingsd.com. Email him at mossberg@wsj.com.

http://ptech.allthingsd.com/20081119/blackberrys-storm-presses-into-the-touch-phone-fray/ http://ptech.allthingsd.com/20081119/blackberrys-storm-presses-into-the-touch-phone-fray/#comments Thu, 20 Nov 2008 02:32:02 +0000 Walter S. Mossberg http://ptech.allthingsd.com/20081119/blackberrys-storm-presses-into-the-touch-phone-fray/ To its fiercest devotees, one of the best things about the BlackBerry is its carefully designed physical keyboard, which the skilled BlackBerry addict can play like a violin. These folks scorn Apple’s popular iPhone, whose keyboard is virtual and must be operated by tapping on the screen.

But, on Friday, Verizon Wireless and Research in Motion (RIMM), the BlackBerry’s maker, will do the unthinkable: They will introduce a BlackBerry model without a physical keyboard, one where typing and navigating require tapping on glass, just as users do on the iPhone. This new model is called the BlackBerry Storm, and will sell for $250 with a two-year contract, though a $50 mail-in rebate can bring the price down close to the $199 that Apple (AAPL) charges for the base model of the iPhone.

Despite its lack of a keyboard, the Storm is a real BlackBerry in every other respect, with push email, corporate features and the familiar BlackBerry menus. In many respects, the Storm is a touch-based, large-screen version of the recently released BlackBerry Bold, which is the most polished version of a traditional BlackBerry. It is also the latest member of the new class of hand-held computers, the super-smart phone category kicked off by the iPhone last year and joined by the Google G1 earlier this year.

The Storm sports a large, high-resolution touch screen that fills most of its surface and automatically switches from portrait to landscape mode when the phone is turned. There’s also a forthcoming souped-up download store for third-party software, meant to be similar to the ones on the iPhone and the Google (GOOG) phone. And the Storm can even be used in European and other countries where most Verizon (VZ) phones don’t work.

BlackBerry Storm’s touch screen switches from portrait to landscape mode when turned, and aims to make typing on glass feel more like typing on a real keyboard.

However, the biggest innovation in the Storm is a clever feature RIM hopes will give it a big advantage over the iPhone. When you strike a key or icon on the Storm’s screen, you feel a physical sensation, as if you were pressing down on a real key or button. That’s because you are, in fact, pressing a real button. The entire glass display is one large button, mounted on a mechanical substructure that allows it to be depressed when pressure is applied.

The idea behind this feature is to make typing on glass feel much more like typing on a real keyboard, and thus to make the virtual keyboard, and the touch interface, more acceptable to people used to physical keyboards and buttons. This push-down screen also replaces the side-mounted scroll wheel or track ball on other BlackBerrys for activating menu choices and icons.

But, in my tests, this physical feedback feature, which RIM calls SurePress, didn’t magically turn the Storm’s touch interface and virtual keyboard into their physical counterparts. The feature does provide a more reassuring confirmation that a key has been struck or an icon has been clicked than the mere visual feedback one receives from the iPhone. But neither I, nor any of the several BlackBerry addicts I asked to try it out, considered typing on the Storm’s keyboard to be very similar to using the keyboard of a traditional full-sized BlackBerry.

In my opinion, using the Storm’s keyboard is much more like using the iPhone’s keyboard than a traditional BlackBerry’s. I found that I could type quite well on the Storm after awhile, but that a greater adjustment, and more practice, were required than with a physical keyboard.

The Storm also has a keyboard oddity that I found annoying, and that may put off others. It presents you with a full virtual keyboard only when you are holding it horizontally. When you hold the Storm vertically, you get a mashed-up keyboard, like the one on the narrower BlackBerry Pearl, which has multiple letters on each key. This keyboard design relies on software to guess which letter you meant to press. You can also switch to a virtual cellphone-style keypad that requires you to hit each key multiple times.

From left, BlackBerry Storm, Google G1, and iPhone 3G

This is a curious design decision. Once a company ditches a physical keyboard for a virtual one, it can create all kinds of keyboard variations. RIM could have offered a full, vertically oriented keyboard, even if it would have had smaller, more closely spaced keys.

RIM also failed to customize the Storm’s virtual keyboard for some common, specific tasks. For instance, on the iPhone, when you are typing in a Web address in the browser, the keyboard morphs to offer a convenient key that automatically enters “.com”. Not so on the Storm.

There’s another glaring deficit in the Storm: It lacks Wi-Fi capability. This means that, unlike on the Bold, the iPhone or the Google G1, if high-speed cellphone data service is absent or pokey, you can’t fall back on speedy Wi-Fi connections in public places. And, at home or in the office, you can’t take advantage of Wi-Fi connections that are often much faster than cellphone data networks.

The Storm has some important advantages over the iPhone. Its screen, while 7% smaller physically, offers about 13% higher resolution. Photos and videos look beautiful on it. It has much better battery life for phone calls than either the iPhone or the Google G1. While the latter two phones deliver just under their claimed five hours of talk time, in my tests, the Storm lasted a bit over six hours, which is actually half an hour more than its claimed 5.5 hours of talk time. And the Storm has a removable battery, unlike its Apple rival.

This new BlackBerry comes with more memory than the similarly priced base model of the iPhone — nine gigabytes versus eight gigabytes. And, unlike the iPhone’s memory, the Storm’s is expandable, via larger flash cards.

The Storm’s camera is much better than the iPhone’s, at 3.2 megapixels, versus just 2 megapixels for the Apple device. It also has zoom and flash, features the iPhone’s camera lacks. And, unlike the iPhone or the Google G1, the Storm can record videos. In my tests, all of these camera features worked well.

Also, the Storm has copy and paste functionality; MMS (a service for sending photos directly to other phones without using email); voice dialing; and the ability to act as a modem for your laptop. It also allows you to edit, and not just to view, Microsoft (MSFT) Office documents. All of these features are missing from the iPhone out of the box.

The Storm also has a better speaker than the iPhone, and a noise-canceling microphone system. Phone calls, even on speaker phone, were crisp, clear and plenty loud. Physically, the Storm is attractive but hardly svelte. While it’s about the same length and width as the iPhone, it is 15% thicker and 17% heavier — almost as heavy as the chunky G1.

The Verizon high-speed network on which the Storm runs is older and better-established than either the T-Mobile (DT) high-speed system the G1 uses or the AT&T (T) 3G network used by the current iPhone. Where Verizon’s high-speed data coverage is strong, the Storm flies.

But, because it lacks Wi-Fi, the Storm can be much slower at Web access than its main competitors. I tested these Web speeds in two hotels in Silicon Valley. In the first, where Verizon reception was strong, the Storm trounced the iPhone on cellphone data speeds, averaging over 800 kilobits per second to the iPhone’s 621 kbps over AT&T. But, when I switched the iPhone to use the hotel’s Wi-Fi network, it beat the Storm by 100 kbps or so.

At the second hotel, barely a mile away, the Storm’s lack of Wi-Fi hurt much more. There, Verizon’s signal was poor, and data speeds on the Storm averaged a horrible 96 kbps. But the iPhone on AT&T averaged 459 kbps, and on Wi-Fi the iPhone averaged 785 kbps.

My test Storm, which was a near-final model missing only a few minor software tweaks, was also sluggish at some tasks. It took noticeably longer than the iPhone to flip the first photo from landscape to portrait orientation, or to start the process of flipping through a series of photos by swiping them with a finger. And some other tasks were also slow. It’s possible that production models will be quicker.

Rim has tweaked the familiar BlackBerry user interface for the touch screen, and in general these changes worked well. You select the menu item or icon you want with a light touch, then press down on the screen to activate or confirm your choice. There are even a couple of cool new touch features. For instance, in a list of emails, if you lightly touch and hold one entry, the Storm shows you all messages in that thread.

But this combination of a light touch followed by a hard press on the large screen took some practice, just like typing did. It befuddled several BlackBerry veterans at first.

And some common tasks took more steps than on the iPhone. For instance, emailing a link from a Web page required four steps on the Storm, versus two on the Apple device. The Storm’s email system will be familiar to every BlackBerry user. It has the same corporate email features as other BlackBerrys, and I was easily able as well to use a BlackBerry Internet email account and to set up several personal email accounts, including Gmail.

The Web browser is much improved over the one in older BlackBerry models, and offers multiple ways to view and navigate pages, including one in which a finger moves a cursor, just as on a PC. But I found that panning and zooming in the browser was a bit slower and more awkward than on the iPhone. And, to make some Web sites work properly, I had to dig through menus to change options.

Using the BlackBerry desktop software, I was easily able to synchronize my calendar and contact data over a cable from a Windows PC. (There’s also Mac software for the same task.) But, unlike the iPhone or the G1, the Storm doesn’t offer wireless synchronization from consumer services, only from corporate servers.

The Storm’s multimedia software isn’t as fancy as the iPhone’s, but it’s better than the G1’s, and worked very well in my tests.

Overall, the Storm is a very capable handheld computer that will appeal to BlackBerry users who have been pining for a touch-controlled device with a larger screen. And it offers yet another good option for anyone who is looking to buy one of the new, more powerful, pocket computers.

Find all of Walt Mossberg’s columns and videos online, free, at the All Things Digital Web site, walt.allthingsd.com. Email him at mossberg@wsj.com.

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