So called heavy users are receiving text message notifications from AT&T informing them of the upcoming data speed penalties.

Your data usage is among the top 5 percent of users. Data speeds for the rest of your current bill cycle may be reduced.

Consumers who are using limited data plans should not worry about being throttled. However it is clear customers do not like data caps nor do they like throttling. Although AT&T is set to report record sales this quarter it seems logical that Sprint’s “truly unlimited” plans could draw extra attention in the wake of AT&T’s throttling.

• Apple A5 Dual Core CPU
• 8 hours of talk time
• 14.4mbps HSDPA
• Improved antenna performance

One of the most interesting feature is the new 8MP camera. Capturing pictures has never been simpler, and with a CMOS backlight sensor, low light performance is improved dramatically. Not only does it capture full HD 1080p video clips but it does so with real-time image stabilization and real-time noise reductions technologies. Essentially, cell phone video have never looked this professional.

However, the main feature for the iPhone 4s is Siri, the personal assistant. Siri responds to your voice commands in a fluid way, there are no predetermined commands meaning Siri actually ‘understands’ your language. You can ask Siri how the stock market is doing or to find you a local restaurant for dinner. Siri also can read you your messages and send replies in a pinch. This service also connects to Wikipedia and Wolfram Alpha so any question you need solved, Siri can solve it.

The iPhone 4s will ship on October 14th, with pre-orders starting October 7th. The iPhone 4s will launch in white and black at $199 for the 16gb model, $299 for the 32gb model, and $399 for the 64gb model. The iPhone 4s will launch on AT&T, Verizon Wireless, and Sprint in the USA. There will also be an 8gb iPhone 4 on sale for $99 and an 8gb iPhone 3gs for free on contract.

iOS 5 will also ship preinstalled on the iPhone 4s. iOS 5, highlighted by a much improved notifications system and deep twitter integration, was announced this summer. The new software also includes the news-stand magazine subscription center, iMessage, and tabbed web browsing. iOS 5 will launch on current hardware October 12th.

Apple also slightly refreshed their iPod line. The new iPod Nano includes some UI tweaks to make navigation easier while the new iPod Touch ships in white. The Nano will sell for $129 for the 8gb model and $149 for the 16gb model. The iPod Touch will ship in black and white for $199 for 8gb model, $299 for the 32gb model, and $399 for the 64gb model.

BGR goes on to independently confirm the rumor and supply a little more detail. Their report suggests two iPhones will be launched tomorrow: again an iPhone 4s for all carriers and the 4G iPhone 5 for Sprint. The iPhone 4s falls in line with the latest rumors: A5 CPU, 8MP camera, NFC, and a metal back.The speculated iPhone 5 would include an even faster CPU, a larger 4″ retina display, improved battery life, a WiMax radio, and would solely launch with the rumored ‘assistant’ voice control system.

BGR goes on to report that the iPhone 5 would launch with LTE support in Q1 2012 on AT&T and VZW. The device would also launch with HSPA+ support for international carriers at that time.

The rumors here are extremely difficult to take in. For one thing, why would Apple want to limit their new flagship device to users on one carrier? Think about it. Only Sprint users would have the new device through 2011. No one else in the USA or around the world. It seems highly unlikely Apple would limit their market penetration. Plus, who would buy an iPhone 4s knowing what the iPhone 5 looks like? Apple would take a hit on two fronts. From the other side a $20 billion guarantee is quite interesting. That is cash in the bank. However, a sprint exclusive iPhone 5 still seems highly unlikely to me.

For more information check back tomorrow for Apple’s official word on the next iPhone incarnation. In the interim check out the video bellow highlighting my rumor roundup for Apple’s “Let’s talk iPhone” media event.

Well, first of all iTunes is currently the iDevice media hub. Not only do you sync your media through iTunes but it also handles software updates and back-ups. To make OTA updates ‘Apple-like’ there would have to be wireless back-ups as well. Otherwise, Apple’s walled garden approach to mobile devices wouldn’t hold true as users wouldn’t be guaranteed recent restore points. Analysts speculate that Apple’s North Carolina data center will be used not only to stream music to customers but also to supply both OTA updates and back-ups.

Another issue is file size. Each time you update your iDevice you essentially download and install the entire iOS package which can weight in at 600MB+. Not only would that take an extremely long time over 3G and most WiFi networks, but users on limited data plans would be destroyed. I expect that Apple will significantly decrease file size in addition to requiring carriers to omit OS updates from a users data cap before any OTA service launches.

OTA updates are the way of the future. It shouldn’t be a big ordeal to update mobile software on the go. OS updates should download and install in the background unless users opt out. Apple is a company that enjoys pushing the market forward but forcing users to sync and update through iTunes has become dated. I expect Apple will address these concerns at WWDC 2011.

Simultaneous Voice and Data
One of the biggest failures of Verizon’s CDMA network is the inability to talk on the phone and access the internet at the same time. Granted, I try to focus entirely on my conversation when I’m on the phone but you’d be surprised how often I find myself reading the web while talking over the speakerphone, particularly when I’m on hold or having a monotonous conversation. Plus, it’s going to be frustrating when you have to disconnect your mobile devices from the new mobile hotspot just to answer a call. It has been long rumored that an iPhone launch on Verizon would accompany such a feature, but there are no indications of such an update at this time.

Speed
Truth be told, AT&T’s 3G network is faster than Verizon’s EV-DO 3G network. Of course performance takes a hit in regions of weak or over-saturated network conditions, but the failures of AT&T are overblown in the media. Personally, I get solid coverage from AT&T, and actually poor coverage from Verizon Wireless near my home. Therefore the upgrade to Verizon’s network would actually be a downgrade for me.

SIM Card
As a technology enthusiast, and reviewer, I often have several smartphones available to use. I also enjoy upgrading on a yearly basis, instead of the two year cycle AT&T wants me to use. AT&T, just as all GSM carriers do, uses removable SIM cards to link your cell phone to your account. VZW, on the other hand, links a non-removable chip in the phone to your
account, making it much more difficult to swap phones. Moreover, many of the phones I receive for review use GSM technology. If I was on Verizon Wireless I would be unable to provide well informed and objective opinions for my audience. And I know you wouldn’t like that!

iPhone 5
The biggest reason why I’m staying away from VZW’s iPhone 4 is the lack of updates. This phone is nearly the same as the current GSM iPhone 4, which I use as my daily smartphone. As per Apple’s yearly upgrade cycle, we can expect the next generation model this summer. I expect this new phone will ship in both GSM and CDMA flavors, so this new CDMA iPhone will quickly be outdated by the iPhone 5. That’s not to suggest the iPhone 4 is in anyway a drag, but early adopters and smartphone guru’s who always want the latest and greatest are bound to be upset.

Conclusion
Obviously this CDMA iPhone 4 will attract a lot of iPhone lovers to upgrade their CDMA device. Don’t get me wrong, an iPhone 4 on VZW is still an excellent phone. However, I personally have some reservations before I switch carriers and lock myself into a another two year contract. Moreover, with several ‘exciting’ android phones, sporting LTE, in the works for a first half 2011 launch, VZW has quite a bit of competition for the iPhone 4.

Chassis:
The iPhone 4 is compact. At 4.5″ by 2.31″ by .37″, the iPhone 4 is smaller than previous generation iPhones. In fact, the phone feels much more ergonomic than other devices on the market making it easier to use. Although a little heavier than previous models, at 4.8 ounces the iPhone is not a brick. In fact, it feels much better in my pocket than other smartphones I’ve used, including the Nokia N97 and the HTC Touch Pro2.

Regardless of size, the biggest cosmetic improvement comes in the form of materials. The days of plastic are finally gone. The back of the phone is now formed with scratch resistent glass, a welcome upgrade from the weak plastic of previous models. Sadly, there are reports of minor scratches on this glass leading users to suspect a lower grade glass than the front touch screen. The phone is then incased in a band of stainless steel to round out the professional appeal.

Speaking of the screen, the new Retina display is majestic. At 326 pixels per inch, the Retina display has by far the highest resolution screen on the market. But is the Retina screen a useful feature or marketing hype? Although it’s hard to imagine, the screen is breathtaking. The level of detail seen in pictures and images is remarkable. In fact, when you load a complex webpage like the New York Times and you can read all the text without zooming, you can more easily understand the usefulness of the Retina display. In fact, thanks to the new IPS technology found in the Retina display, the iPhone 4 has much wider viewing angles from all directions.

Also on the exterior of the phone are the antennas. Perhaps the biggest talking point of the iPhone 4 isn’t what it does well, but its reception woos. As early as launch day, left handed users were noticing signal degradation when holding their phones. As more reports hit the internet, it became clear something was wrong. Apple responded in a press conference designed to highlight the problem and showcase the issue in other device.

Apparently, the formula used to display the signal bars is completely wrong. Apple goes on to say that the reason for signal loss is poor mobile data coverage and suggests that the original bar reading may have been artificially increased. A software update has been released and Apple will supply free cases to combat these problems. Although I can reproduce this issue, I have yet to drop a call or loose connection. Either way, a free case is a nice gesture.

Finally, I’d like to address colors. When Apple announced the iPhone 4, they demoed both a black and a white unit. Unfortunately, just hours before launch Apple officially stated that white iPhone’s would not be available until late July 2010. Personally, I have no interest in this white model. However, the absence of a white iPhone has increased demand for the black model making it more difficult to purchase a unit. Apple says manufacturing issues forced their hand, but it seems to me Apple used this situation to artificially boost demand.

Camera:
One of the reasons I was so quick to jump on this new iPhone was the improved camera. At five megapixels with a larger sensor and an LED flash, pictures look much better than before. Images are crisper and autofocus continues to work wonders. I’ve been particularly impressed with macro shots taken by simply tapping on the screen. And although there isn’t an optical zoom you do have the option of using up to a 5x digital zoom, although I tend to steer clear of this method.

Moving on, video recording is very important to me. Sporting 720p HD video capture, the iPhone 4 is great mobile device for aspiring film makers. The idea of having a viabile capture option wherever you are is extremely appealing, and one of the major selling points of this device. In terms of quality, video look great. Resolution is sometimes marketing hype but Apple’s implementation of video recording works very well and creates excellent video. And if you want to edit your high definition clips on the go, iMovie has gone mobile and works quite well.

Moreover, Apple has added a VGA resolution camera to the front of the phone. Useful for taking self portraits, this camera has another great feature: FaceTime. FaceTime is Apple’s mobile video chat solution allowing iPhone 4 users to speak, see, and hear their contacts. FaceTime is limited to iPhone 4 and is currently WiFi only. Apple has said they plan to make FaceTime utilities public allowing developers to create their own solutions on top of the FaceTime API’s. I’ve yet to determine the practicality of video chat, but having the option to see my friends when I call them is appealing.

Battery Life:
Since the dawn of time, smartphone users have been crippled by poor battery performance making it difficult to last the entire day on one charge. The only solution was to disable services, forcing many users to cripple their new devices to last throughout the day. As of late, Apple has made great strides in battery performance offering powerful laptops with legitimate eight hour batteries and the iPad which lasts for over ten hours on a signal charge.

Without a doubt, the iPhone 4 takes queues from its brothers. With a battery now rated at 1420 mAh, the iPhone takes usage in stride. I’ve been able to complete a day of heaving usage while staying above 40%. Simply amazing. What’s more, Apple’s battery technology is expected to last for one thousand recharge cycles meaning you can expect quality battery performance for a long time.

Calling:
Often overlooked on smartphones, the core function of these devices is calling. Although I’ve personally moved away from voice chat in favor of SMS, MMS, and Email, I still think it is truly important to purchase a phone with solid calling abilities. I’m happy to say the iPhone performs extremely well. I’ve both made and received calls from the iPhone 4 and can honestly say it sounds life like. Words are audible, voices are clear, and I’ve noticed fewer dropped calls.

New to the iPhone 4 is a second microphone, located on the top of the device, for active noise cancellation. In simple terms, the second microphone picks up background noise and removes it from your outgoing audio making your conversations less noisy and distracting. Furthermore, Apple has greatly improved the speakerphone making calls louder and crisper while also enhancing the music listening experience.

Apple has also implemented a software feature to help AT&T’s desperate network. The device actually switches from band to band to connect to the frequency with the least amount of congestion and interference. Don’t get me wrong, if the signal is too weak the iPhone won’t connect to it, but there are other variable in play to make your experience the best it can be.

Conclusions:
You can read as many overviews and walkthroughs as you want but eventually you need to make a decision: should I buy this device? I’m sure you have discovered this by now, but I am extremely pleased with my iPhone 4. I’m always connected and the iPhone is a solid device that drives my communication: whether that be social media or direct conversation. iOS 4.0 is a great software package that makes using the device simple and reliable while also expandable with over 200,000 third party applications.

To be frank, there is no better device on AT&T at this point. The hardware of the Palm Pre Plus is dated and the few android devices are limited by AT&T’s restrictions. I’m a fan of the Tilt 2 (Touch Pro2) but at this point I’d stay clear of Windows Mobile devices, at least until Windows Phone 7 launches. If you are on another carrier, you are not excluded either. If you have good AT&T coverage, I highly suggest you switch to the iPhone, you won’t be disappointed. However, if AT&T 3G is lacking in your area I suggest you look for a different device on your network. The iPhone is a quality smartphone but if you don’t have reception the whole point of an always connected mobile device is lost.

After much deliberation, Job’s himself has confirmed that Apple is dropping software updates for the original iPhone and iPod touch. Not only does the original iPhone not get a crippled version of OS 4.0, like the iPhone 3G’s inability to multitask, but OS 4.0 won’t even install on the original iPhone. Moving forward, I expect software updates will require new hardware in order to get all the new features while last generation devices will get a crippled update. For instance, OS 5.0 will not support the iPhone 3G and will offer a limited experience to 3GS owners.

As the market evolves new hardware is needed to support new features. As consumers, we want the latest and greatest features in our handsets. If Apple were required to update their older devices we, as customers, would see limited upgrades to keep older hardware going. I don’t support dropping features in software when the hardware can support it, like MMS on the original iPhone and multitasking on the iPhone 3G, but I do understand why Apple will no longer support aging hardware. If you want the latest software, then upgrade to a newer handset. Otherwise, enjoy the features you do have or jailbreak to unlock the pirate inside.

Email:
One of the simplest yet useful features of OS 4.0 is the unified inbox. Many of use have several email accounts and being able to access your messages from one inbox instead of different ones is a time saver.

As you can see, your messages still look very similar to older versions of the software. However, if you look at the first message you see a number “2″ which signifies there are multiple messages in that thread.

When you click on an email that is part of a thread, you get a list view of all the email in that particular thread. Another time saver when dealing with a large volume of messages.


Camera:
Although I dislike digital zoom, having the option on your iPhone is a nice addition. All you have to do is double click on the screen and a zoom control appears atop the live preview.


Gamecenter:
Apple is launching a new application called gamecenter to unify and track your gaming achievements. With features such as matchmaker and leaderboards, gamecenter aims to become your social gaming network of choice for iPhone.


Multitasking:
Multitasking is the big features of OS 4.0. Apple is finally allowing users to run 3rd party applications in the background. Unfortunately, as mrbit points out, apple isn’t truly allowing applications to run in the background but rather is allowing certain application types permission to run a service in the background. So it is a multitasking solution, but it’s not a complete “free for all” like in Android or webOS.

Multitasking Video Walkthrough:


Folders:
Creating folders to organize applications is extremely easy. Simply drag one app onto another and a new folder is created. From there, you can drag more apps into the folder and rename it. Using folders, you are now able to store 2,000 apps on your device.


Backgrounds:
Although not a revolutionary feature, iPhone users have been asking for custom homescreen wallpapers since OS 1.0. Four incarnations later, users can choose any picture and use it as either the lockscreen background, homescreen background, or both.

iPhone OS 4.0 Video Recap:

Media Event Recap*:
iPad
-450,000 iPads sold to date (300,000 at launch)
-1 million pad app downloads day 1 (3.5M through today)
-600,000 ibook downloads
-3,500 iPad apps in app store today

App store
-4 billion app downloads
-185,000 apps

iPhone
-JD power award three years running (2008-2010)
-64% mobile browser usage belongs to iPhone
-50 million iPhones sold (85M including iPod Touch)

iPhone OS 4.0
-Over 1500 new API’s
-quick look, photo library access, in app sms, full access to camera
-accelerate for “hardware accelerated math functions”
-Over 100 New Features (All)
-spell checker, 5x digital zoom, change homescreen wallpaper

Big 7 Updates:
• Multitasking

-drains battery very quickly & terrible performance
-new way to multitask 3rd party apps and avoid battery drain
-double click home button to reveal a window overlay of open applications
-great implementation of multitasking
-7 multitasking services (API’s) for multitasking:

1. Background Audio (Pandora)
2. Voice over IP (Skype)
3. Background location (baseband always connected to cell towers)
4. Push notifications
5. local notifications
6. task completion (upload to flickr)
7. fast app switching (apps save state and stop running, then resume)

• Folders

-Drag apps onto each other to make a folder
-automatically named after category of apps, can be renamed

• Enhanced Email

-unified inbox
-multiple exchange accounts
-organize by threads
-fast inbox switching
-open attachments in apps from app store

• iBooks for iPhone

-iPad/iPhone integration (wirelessly sync books, current page, and bookmarks)
-buy once, read anywhere

• Enterprise Improvements

-improved Data Protection
- wireless app distribution
-mobile device management
-SSL VPN support

• Game Center

-social gaming network
-achievements, leader-boards, match making

• iAd Mobile Advertising

-emotional and interactive ads (almost like ad itself is app)
-keep user in application
-Apple sells and hosts ads, 60/40 revenue split (devs/apple)
-Very quick to implement in app
-ads can use API’s (show theaters near you)

• iPhone 3GS and iPod Touch 3rd generation get all features
• iPhone 3G and other iPod touch models get limited features with OS 4.0, no multitasking
• iPad gets update this fall

*These are the exact notes I took during the media conference. Please forgive any abbreviations and the informal nature of this recap.

This launch date actually comes a few days after the end of summer making AT&T’s ridiculous lack of support on day one ever more frustrating. I mean, AT&T has supported MMS on all other phones for years so to limit their flag-ship device is simply absurd. Now AT&T claims the delay is related to the sheer number of iPhone users they have and that they expect record volumes of messages. Now I understand wanting to preserve the network, because I cannot imagine how terrible it would look if the entire network went down, but the fact that their network is so fragile is pathetic.

I’m not saying Verizon or Sprint would, necessarily, do a better job but I am concerned with AT&T’s practices. Their current network is lagging behind and they have no plans, right now, to compete with Sprint’s 4G network nor Verizon’s LTE network scheduled for launch next year. I suppose it will be nice when we finally can send pictures and videos but AT&T’s defense to this poor decision is alarming.

No word on when to expect official tethering on AT&T although they continues to say it’s coming soon.

AT&T

• Decrease in call set-up failures and dropped calls.
• Significantly better battery life for most users.
• Dramatically reduced time to backup to iTunes.
• Improved email reliability, notably fetching email from POP and Exchange accounts.
• Faster installation of 3rd party applications.
• Fixed bugs causing hangs and crashes for users with lots of third party applications.
• Improved performance in text messaging.
• Faster loading and searching of contacts.
• Improved accuracy of the 3G signal strength display.
• Repeat alert up to two additional times for incoming text messages.
• Option to wipe data after ten failed passcode attempts.
• Genius playlist creation

This update also address several security issues. Apple even gives specific instructions on how to install the new firmware.

I am still testing this firmware and will get back to you with an update regarding my personal experiences.

Update:
My personal impressions of this new software is in the video bellow. Honestly, apple made a huge mistake shipping buggy software at launch and this 2.1 software update is what the original firmware should have been.

Now for the meat of this post, the breakdown and comparison of the Nokia N95-4 8GB NAM and the Apple iPhone 3G. The phones are compared in five different categories spanning design, navigation, features, multimedia, and call quality. Although in the end one phone must win, both are quality devices and should not be taken lightly.

Design
The Nokia N95 has a very sleek look.The glossy black front and matte-black finish on the back looks quite nice. The dual slider looks good too. The screen is pretty bright and everything looks like it belongs. However, it would have been nice if Nokia updated the look of the buttons and made the device a little skinnier. As for the iPhone 3G, Apple has once again created a device which has no competition. The screen is amazingly bright, responsive, and large while the sleek finish on the back continues the unique design from the front.
Winner: Apple iPhone 3G

Navigation
The N95′s weakest attribute is its navigation. Finding a particular application or function takes a while when you have to dig threw the file structure of this phone. Plus, you are limited by the button navigation that is far less efficient than a touch screen or scroll ball. As for the iPhone, everything you need is with-in a fingers tap, as you can store anything you need on the home screen. Plus, the touch screen works so well. Nothing currently on the market can match the sensitivity and accuracy of that screen.
Winner: Apple iPhone 3G

Features The Apple iPhone 3G is loaded with features. You have the app store which is an amazing resource for free and commercial applications, Eight or 16 GB of storage, and friendly support at your local apple store. (If you ever need it) Plus, thanks to the great interface, web-browsing on the iPhone is amazing. (Both phones have HSDPA and UMTS for 3G networking.) The N95 doesn't have a great service for finding application on the go however you can run almost anything on it. With the iPhone, Apple decides what you can put on it, the N95 however does not have any such limit. (It can even run unsigned applications.) The N95 also has some basic features the iPhone is missing including MMS messaging, the option for turn by turn directions (although that costs extra), and the ability to tether your phone's data connection to a computer. It even has copy and paste functionality.
Winner: Nokia N95