The bad news: To prevent users from "unlocking" the device so they can use it with other carriers, the new iPhone can be purchased only with an activated service plan from an official Apple-appointed telecom carrier.
Previously, consumers could buy it online or in stores and activate it online later.
Apple said the iPhone will begin selling on July 11 in Apple retail outlets and AT&T stores in the US and in 70 other countries by the end of the year.
In Singapore, Singtel - Apple's first mobile operator in the Republic - would only say it will be available "later this year".
Overall, the pluses of the iPhone3G outweigh the negative points.
The real selling point about the much-anticipated iPhone 3G is not its new features but the cheaper price tag of US$199 (S$271) for the 8-gigabyte version with a two-year phone plan.
This is half the price of the existing iPhone. The 15g version will be sold for $299.
The iPhone 3G will be faster, with Internet speeds that are twice as fast as the phone's current version.
Analysts said the iPhone appeals to those technology consumers who already use their mobile phones and iPods for music and other digital entertainment and have been waiting for a better and cheaper version of the phone to be released.
The new-generation phone will be thinner than the previous model and include location-based services via the Global Positioning System.
It will also have software that automatically updates e-mail, calendars and contacts and will have a longer battery life.
But PCWorld.com said that Apple has failed to address reliability issues with the iPhone hardware, including battery problems.