There is no “hey wow” feature, but Apple’s handset fills many of its predecessor’s feature gaps, and ramps up the speed - to the prime advantage of Telecom XT users.

Overall, the iPhone 3G S - the third version of Apple's handset - is an evolutionary rather than revolutionary upgrade.

Its headline feature is the 3G S's ability to take full advantage of a 7.2Mbit/s W-CDMA HSPA 3G connection, making it Apple’s fastest handset yet.

“The S stands for speed” said Apple marketing VP Phil Schiller, unveiling the new iPhone in San Francisco on the first day of Apple’s WorldWide Developer conference (and at the same time killing speculation that the returning Steve Jobs would make his traditional keynote appearance).

The new iPhone also gets a memory boost to 32GB in its top-of-the-line option; a long-awaited video option and, in combination with the new iPhone OS 3 software (also available for older iPhone and iPod Touch models from today), cut-and-paste.

Other new features include
- a video camera and the ability to shoot, edit and share clips
- "tap to focus", which makes the iPhone 3G S's 3.2 megapixel digital camera focus on any element of an image you're shooting
- the addition of a digital compass, the better to face the right direction when you're reading a Google Map
- voice controls; and
- the ability to sync with Nike smart shoes that track your jogging mileage.

Like its predecessor, the iPhone 3G S operates on three W-CDMA bands: 850MHz (used by Telecom nationwide), 1900MHz and 2100MHz (used by Telecom and Vodafone in urban areas for extra bandwidth; Vodafone uses 900MHz nationwide). Outside of a 3G coverage area, it trips down to 2.5G/GPRS/GSM.

The iPhone 3G S will be released in the US and selected markets on June 19. A spokesman for Vodafone New Zealand says to expect the handset here by August.

iPhone remains a Vodafone-only product in New Zealand, although Telecom is in negotiations with Apple, with typically favours multiple carriers.

Telecom, which offers Sim card-only activation for XT, says it’s up to customers whether they put their Sim card into one of its handsets or one, such as the iPhone, purchased from Vodafone (more on this trick, and NBR’s experiences with it, here).

A 16GB version of the iPhone 3G S will sell for $199 in the US; a 32GB version for $299. Local pricing has yet to be announced ahead of the iPhone 3G S's August release.

The second generation iPhone 3G will stay on sale in parallel to the new iPhone 3GS, but be cut in price to $US99 - a move that analysts say will double sales.

See Apple's full feature demo here.