On June 29, 2007, Apple and AT&T released the iPhone for $600 to crowded stores throughout the United States. A whole lot has changed in the iPhone-world in just 2 short years. The 1.0 software is just a distant memory, and looking back I'm a little surprised how limited the original iPhone was at release. I thought for the 2-year anniversary, we could take a little walk down memory lane and see how far things have come.

Apple announced the iPhone at Macworld in January 2007, explicitly stating they were doing it because otherwise the FCC would have outed them. Cingular/AT&T was named as the exclusive carrier. The phone would cost $600, which was a completely unsubsidized price.

It seems like everyone who's purchased an iPhone 3GS at this point has had a different reason for buying one. For some people, it was all about getting a faster CPU; for others, it was their first 3G-and-beyond smartphone.

My personal reasons for spending my hard-earned bucks to buy a 3GS were to take advantage of the higher-resolution (3 megapixel) autofocus camera, since I love taking photos with my iPhone, and to shoot video with my phone. Phone video is nothing new; I had it three years ago on a Palm Treo 680. But the ability of the 3GS to not only record video, but also allow limited editing before sharing the video in a number of ways, really made me want to get a 3GS immediately.

In this TUAW First Look, I describe the recording and editing processes in detail, and then give you my impressions of how good or bad the 3GS video capabilities are. I also provide a comparison with video taken by a T-Mobile G1 Android smartphone.

Just when you think you're in the groove for the new iPhone 3G S, Apple goes and starts changing the game. The 3G S is, figuratively speaking, no more. Apple has quietly been changing all references on it site from 3G S to 3GS. The space between the G and the S has been removed.

TidBITS broke the story in a piece aptly titled "Ding, Dong, the iPhone 3GS Space Is Dead". (We too did note the change in a story yesterday.) TUAW reader and personal tech review colleague Joachim Bean found the pair of images you see here. To the right is a cached image from June 15th. To the left is a shot from yesterday, June 22nd. Notice anything? Yes, it's been spacicided.

So will we miss the space? It was, as Engst points out, an awkward construction. But after forcing ourselves into the space habit, it may be a hard one to break.

So let's have a moment of silence for the 3G S space. It is dead, not stunned, and not pining for the fjords. Despite its brief moment in the pop culture sun, the 3G S space has expired and gone to meet its maker. Bereft of life, the space rests in peace. And if we at TUAW may occasionally nail it back into place by accident, be assured that it will be reinterred and pushing up daisies ASAP.

I just bought my first iPhone, a 32 GB iPhone 3G S, and found that that there is an abundance of information out there covering just about every aspect of its use. As an iPhone virgin, most of this is new to me, but I'm sure it's old hat to most.

Apple, however, is set to sell over half a million new iPhones this weekend, so I'm sure there are a lot of virgins in my position. This post and maybe some to follow are not meant for anyone who is fluent in iPhone, but rather for newbies like me. So, skip this if you've been at the party for awhile, but if you just ripped open your iPhone box, read on:

Ringtones
I tried making a ringtone from iTunes, but when right-clicking on a song and choosing 'create ringtone' I found that only songs purchased from the iTunes store could be used, at least in iTunes 8.2. In reality you can make a ringtone from any MP3. You can find the easy steps here.

Double Contacts and Calendar Entries
After setting up MobileMe and syncing my phone the first time, I found that all my contacts and calendar entries had been duplicated so that there were two identical entries of everything. Our own Chris Rawson set me straight on fixing this. If you disable calendar and contact syncing from the iPhone, all the information brought in from MobileMe will vanish. Next, re-enable them and you will be asked if you want to merge the contact and calendar information with what's on the iPhone (which was brought in by iTunes). You do. And in doing so, the problem will vanish. This tip is not just for iPhone 3G S owners, it's also happened to previous iPhone users who updated to system 3.0.

Period Space Bar Trick
When writing an email, typing the period key on my iPhone 3G S often does weird things like jumping down a line or two, slowing me down to a crawl. Chris Rawson also came to my aid by telling me that when you reach the end of a sentence, double tapping the space bar displays a period. This is much quicker for me, and my typing is cleaner. I'm not sure about earlier iPhones but for the iPhone 3G S, this must be set up manually. Go to settings-> general->keyboard and turn on the "." shortcut.

Applecare
There is no need to pay Apple $69 for AppleCare. I've been buying AppleCare from eBay at a decent savings for years. Often you don't get a full box, just a paper with the registration code, but I've never had a problem. Right now you can get AppleCare for $42 including shipping.

What have you found? If you have a problem or question and are too bashful to ask: ask here and we'll put our hive-mind right on it.

It's Father's Day here in the USA, UK and Canada (best wishes to all the Mac daddies out there!), and if the tea-leaf-reading over the iPhone 3G S launch is accurate, it looks like quite a few of those dads may have gotten a shiny new phone as a gift from the spouse and kids. Which would have been really thoughtful and unexpected. If I had gotten one. Anyway.

The pre-launch expectation from analyst Gene Munster was for a comparatively modest 500K units sold over the weekend vs. the 3G million-phone launch, but now his firm has suggested that may have been a conservative number, as noted by AppleInsider. Between AT&T's citing of 'hundreds of thousands' of pre-orders for the phone, and O2 announcing that first-day sales for the 3G S blew past the totals for the 3G last year, it's possible that the 3G S could creep up towards that million-phone number and blockbuster territory.

Despite (or perhaps due to) the brisk sales pace, AT&T's activation infrastructure did not seem to be ready for the influx of account changes; this is a familiar situation, as last year's 3G launch triggered similar delays. Many new buyers (including our own Steve Sande) were faced with activation delays between two hours and two days. In recognition of the aggravation and inconvenience, Apple has begun emailing affected users with the offer of a $30 iTunes credit to be delivered Monday morning, according to Everything iCafe. If you got a credit email, please let us know.

If only we'd had any sort of Apple news to talk about this week! Last week Christina and the crew reviewed WWDC and looked ahead to this week's product introductions. You can download past shows from Talkshoe, Stitcher or subscribe in iTunes.

We'll be live tonight (6/21 at 10 pm ET) and quizzing all the new iPhone 3G S owners on the team -- not to mention taking your calls, questions and suggestions during the show. We'll also offer a special Father's Day salute to all of the Mac daddies out there. Please do join in!

To participate on TalkShoe, you can use the browser-only client, or you can try out the classic TalkShoe Pro Java client; however, for maximum fun, you should call in. For the web UI, just click the "TalkShoe Web" button on our profile page at 10 pm Sunday. To call in on regular phone or VOIP lines (take advantange of your free cellphone weekend minutes if you like): dial (724) 444-7444 and enter our talkcast ID, 45077 -- during the call, you can request to talk by keying in *-8. Talk with you then!

Recording support for the talkcast is provided by Call Recorder from ecamm networks.

Testing how speedy the iPhone 3G S "S for speed" really is has become de rigueur. iLounge has put together two videos comparing the facility of the 3G S to the 3G, last year's iteration of the iPhone, and to the second generation iPod touch.

The operator tests four applications: Edge, Peggle, Real Racing, and Star Defense. They are all graphically heavy games with initial load times, and likely where the difference will be most exaggerated. As is to be expected from a phone named for its swiftness, the 3G S outstrips both the 3G and the iPod touch by a fair margin, though the iPod touch counters the 3G S a bit more easily than the 3G does.

The videos don't offer any quantitative analysis, nor are they exact by any stretch of the imagination (you'll just have to trust the device operator to touch the application icons simultaneously), but it's comforting to know you that if dropped at least two bills, it was for a reason. Because the videos don't offer any guidance as to which device is where, I'll clue you in: in both videos, the 3G S is on the right.

Ahhhh. The smell of new electronics, released from their cardboard box after a week long journey from Shenzhen, China to Highlands Ranch, Colorado. The texture of a clean, fresh iPhone encased in its plastic wrapper. The fun of finding not one, but two little Apple stickers in your package.

Yeah, it's unboxing time at the Sande household. It's my turn to take you through the delivery of not one, but two iPhone 3G S phones on 6/19/09, followed by the luscious views of a young, unsullied iPhone being taken out of a box and activated (well, not quite).

For those of you who bought your iPhone 3G S's on Friday, this will be a fond remembrance; if you didn't buy the latest iPhone, this is a cruel temptation to get you to exercise your credit or debit card at your local Apple or AT&T store. Enjoy the view!

We don't want to imply that the iPhone 3G S launch was a dud. There's reports out that the 3G S may have sold more units than the 3G on opening day, but even more reports are coming in that the lines and general mayhem at Apple and AT&T stores were much more subdued this year than in previous years. There's a lot of speculation as to why, but we at TUAW figured we'd go straight to the source and ask our dear readers. Why weren't you in line this morning?

I just got back from the Apple Store and am now the proud owner of an iPhone 3G S 32 GB in basic black. I can't wait to get at it, but before dive in, I want to write a bit about the experience.

Driving to the Apple store at the Walt Whitman Mall in Huntington, NY, I drove past an AT&T store which had no line and very few cars in the parking lot. When I got to the Apple store, it was a different story. There was a bit of a line or actually two lines, but nothing big. When I got to one of the Apple reps at the start of the line, I was asked if I pre-ordered. I had, and my name was on the list. I was told to stand on a line of only five people, the other line of people who had no pre-ordered numbered fourteen.

It was about 1:50 pm when I got there and I was curious to see how the Apple experience would differ from what I was accustomed to. The last few times I bought a cellphone, it was a slow, laborious process where the store rep had to take a ton of information from me, get a credit check, wait, find a phone, wait, get more information from me, wait, take the phone to the back to infuse it with life by chanting arcane spells and pushing arcane buttons, wait, hear a canned sales pitch on how the phone would be absolutely no good without a dozen or so accessories that they would be very happy to sell me, refuse, wait, sign a sheave of documents, wait, get the okay, a shopping bag and a receipt and finally leave the story after well over an hour. Let's see how Apple does it.

While waiting in the line with a bottle of Poland Spring Water given to me by an orange-shirted rep, I struck up a conversation with Angelo Vergara who was trading in his three month-old 16 GB model for the same capacity in a 3G S. He told me a story that made me do a double-take. Angelo could have upgraded a year ago according to his contract, but didn't. Instead, he bought his iPhone 3G a few months ago. To upgrade it would cost him $399. That sounded a bit steep. I asked him why he couldn't just cancel his contract, sell the 3G iPhone and pay the early termination fee, and then start a new contract along with paying only $199 for his new phone. He told me that doing so would lose his phone number which he was not wont to do. The net dollars spent would be close, but it seems like he was caught in an odd concatenated AT&T policy. When I got to the front of the line, I asked Jane, my sales rep if this was, in fact, policy and she told me it was. Seems somewhat fishy though.

We had a quick chat with Dr. Wm. Cameron Powell of Airstrip Technologies at the 5th Avenue Apple Store this morning, talking about his company's data visualization and monitoring tools for hospital use. Airstrip's FDA-approved application for OB monitoring is already on the App Store in demo form, and is being rolled out in sites around the country; the company was featured in the WWDC developer showcase video, which has really ramped up the volume of calls and emails that Powell and his team are getting from large medical systems integrators.

Airstrip's forthcoming Critical Care product is in the final stages of testing before rollout; the company also has cardiology, imaging and lab test versions coming soon.

I was at the Aspen Grove Apple Store in Littleton, CO today for the annual iPhone event, and shot some video while I was there.

In contrast to 2007 and 2008, the lines were much shorter. It appeared that everyone was walking away from the store happy and with an iPhone 3G S in their hands.

I will return later today (or early tomorrow; it depends on how long it takes to activate the new phone) with another tradition -- the unboxing video. Be sure to check back for some unboxing fun!

One of the highly touted features of the new iPhone is the ability to have the map display your direction of travel. A great idea, long overdue. As people were walking out of the Apple Store today it was one of the first things some people wanted to try. They brought up the Google Map app, and then started spinning around. But these whirling dervishes weren't getting anywhere.

Since I was the real smart TUAW dude, I told them I could get it going. Nope. Nada. Zero.

After a bit of a search at the Apple web site when I returned home, I found it. You have one more tap to do on the map. When you tap the location icon at the lower left of the map screen a second time, it changes to a new, previously unseen icon. It looks like a little wedge in a circle. When you activate it, you're good to go. Or spin.

I think if I were designing this I would have made it an option on the map to default to direction of travel, or North at the top. Oh well, nobody asked me. Not the most obvious GUI design, but I guess once you know it, you know it. Now you know it too.

Freeverse president Ian Lynch Smith and dev lead Bruce Morrison were among the crowds at the 5th Avenue Store early this morning, and both are enthused about the promise of the new iPhone hardware for gamers. We took a few minutes to talk to them (pardon the loud store noise).

It's here, it's here! Check out the gallery below for what's in the box. Same as usual: headphones (the earbuds with volume control), sync cable, manuals (one called "Finger Tips" -- cute), the phone and a metal tool for popping the SIM out. The Finger Tips manual is updated to show off the new features in the 3G S. Oh, and there's no dock in this box. It is much smaller nowadays, and probably saves a ton on packaging. Update: whoops, forgot to mention that you do get a wall plug (2-prong, very tiny) for charging.

My in-store experience was great. Once I got into an Apple Store within less than 30 minutes I had activated the phone and had my first MobileMe sync done. The creative specialist I was talking to was eager to show me anything else I wanted, but there was a big line and I know what's what. Something I thought was interesting: the very first thing he did once I removed the plastic on the phone itself was to touch and sorta swipe at the screen. "No smudges!" he said with a smile on his face. When the 3G S was first announced we speculated about the oleoresistant surface, and it looks like that's a feature Apple wants to quietly promote.

I also tested the smudge-resistance on my admittedly greasy face and fingers (I once killed a Mighty Mouse within a month, if that's any indication). Sadly there's no official metric for resisting smudges, but on a 1-10 scale, with 10 being "smudges if you look at it" and 1 being "rub it on a pizza and it still squeaks" I would rate the new iPhone at a 5. The 1st-gen, which I had been using, I would rate at a 9. So there is an improvement. See the gallery for a little bit of testing.

How has your 3G S experience gone so far? Update #2: yes, this is the first iPhone I purchased. My previous iPhone was an aftermarket 1st-gen iPhone. So all of this is new to me, thanks for pointing that out.