INBOX:WHEN THE iPhone first launched in 2007 it was revolutionary. The touch interface was likened to something out of the movie Minority Report. Fast-forward two years and with the release last week of the iPhone 3G S (supposedly, "S for Speed"), we are a little more, well, jaded, writes MIKE BUTCHER

For starters, the 3G S looks exactly like the iPhone 3G. It doesn’t even say S on it. So what has been improved, and should you get it?

Well, you’ll probably be familiar with the iPhone’s multi-touch interface and simple, one-button controls. You’ll know it is tied to O2 and requires a reasonably pricey long-term contract to own. So much for the obvious. What is new is the VGA video recording and upload.

This was not previously possible, even though some of the worst mobiles out there have been able to record (usually bad quality) video for years. The difference with the iPhone 3G S is that this video is gorgeous to shoot and to watch. Not only that but you can even edit the video in the phone – this is unheard of until now. Plus, with the ability to upload video to YouTube, the web is poised to groan under the weight of a million “newbies” (people new to gadgets unlike you, dear reader) uploading even more video of life’s inanities than you ever imagined. Uploading to YouTube is best done with short videos over 3G and longer footage works well over WiFi.

The 3 megapixel camera is also a welcome improvement over the previous 2 megapixel one – though Nokia N98 and N97 owners will smirk, given their 5 megapixel power (plus flash, which the iPhone lacks). Plus you now have a digital compass – a handy feature which will now tell you which way to walk on a Google map.

And of course there’s that “S”. Yes, this is a noticeably faster machine, though we are talking nano-seconds faster here, in most day to day uses.

However, there is a problem here. Other than that, you’re looking at a nearly phone.

What has really, properly changed is the underlying software – the iPhone 3.0 system software which is actually available to existing iPhone 3G users. Granted, the iPhone 3G S makes better use of the software, but thats the main essential difference. iPhone 3.0 itself actually makes the iPhone into the true, card-carrying smartphone it has slightly pretended to be until now. Now we have cut and paste, search across the whole device and many other traditional smartphone features.

But the iPhone now appeals to many more people, precisely because of the video recording capability and full-blown, smartphone functions – from the high end user to the low end one.

Meanwhile, the real, game-changing iPhone upgrades we were hoping for – a camera flash, HD video, 5-8 megapixel camera, wireless syncing etc – probably won’t arrive for another year.

So non-O2 customers and customers thinking about upgrading their old handset will like the iPhone 3G S. Existing iPhone 3G users – who don’t want or need video right now – may perhaps want to wait out their contract until they qualify for a free upgrade. But of course, I know the true iPhone fans won’t listen to that – and so far sales of the iPhone 3G S are confirming that it is the next hot phone to have.