Speed

In iPhone 3G S, the S stands for speed — because it comes with new processor that gives a faster, snazzier and quicker app-launching as well as web page loading experience. The new iPhone 3G S also consumes less power, thereby promising a longer battery life. New iPhone supports OpenGL ES 2.0 standard for accelerated 3D graphics.
Camera

Apple has wisely taken users feedback and upgraded the camera from the old 2 MP to a 3 MP in iPhone 3G S. The upgrade isn’t merely in terms of megapixel, iPhone 3G S’ camera features auto focus, auto white balance, macro, low light modes and auto exposure - no flash though, sorry. It also records video at 30 frames per second.
Cut, Copy, Paste

Now you can cut, copy, and paste not just words but also photos — even between applications. This is also possible with the content from the web too.
Voice Controls

Users can make phone calls, play music, check the track info or request to play a particular song from their playlist - all with voice. In addition to that, users can also command to play songs similar to the currently playing track. The new VoiceOver feature turns iPhone 3G S into gesture-based screen reader with a support for 21 languages.
Compass

The iPhone 3G S can quickly map the current location of the device owner using built-in magnetometer along with GPS, WiFi and Cellular network towers. The new Compass application uses the magnetometer to reorient the map in the direction user is facing with semi-transparent cone. When used in conjunction with the Maps application, users can get turn-by-turn directions and also street view. Of course, Street view would be available in countries participating in Google Street View program.
Internet Tethering

New iPhone 3G S brings tethering support - connect the iPhone to Mac or PC for using the phone as a modem. For tethering, users can connect their iPhone 3G S to the Mac or PC systems using USB cable or wirelessly.
Image courtesy: Apple
[Thanks: http://www.techtree.com]
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