In silence, Apple iPhone users have suffered. The worldwide iPhone community (except for India) has been loving the product so much that it has kept relatively silent about some major problems on the otherwise excellent smartphone. For example, on-screen keyboard has only been available in narrow, uncomfortable layout when the phone is held in portrait position. The Apple iPhone 3Gs features multiple welcomed improvements to the iPhone 3G. The main differences between the 3Gs and the 3G are as follows.

On-screen keyboard is available for all applications also in wide-format horizontal mode.
Thanks to a more powerful processor, the iPhone 3Gs can record video clips. Video resolution is 640x480 pixels at 30 frames per second. Audio is captured is well.
The digital camera has been upgraded to 3 megapixels from 2 megapixels.
For power users, cut, copy & paste features are available for moving text and objects from one application to another.
Phone-to-phone picture messaging, known as MMS (Multimedia Service) lets iPhone users send and receive photos from other phones without having to access email.
Audio recording is a new feature on the iPhone 3Gs.
The iPhone 3Gs can playback stereo music to a stereo Bluetooth headset (A2DP feature).
Search function lets you search information stored on the iPhone 3Gs.
Digital compass can show direction even when standing still. GPS requires movement in order to point the direction.
Longer battery life.

To learn the differences between the original iPhone and the iPhone 3G, check out this summary.

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