By Jonathan Blake
Newsbeat US reporter
In San Francisco on Monday, Apple unveiled what it calls the "fastest, most powerful iPhone yet" - the 3GS. So how does it compare to previous versions?
The iPhone 3GS has voice control and a built-in compass
Some critics say the new incarnation isn't anything that wasn't expected.
They argue that for many iPhone users, the new model may simply do things they expected the original one to be capable of.
It has more speed, more storage, better battery life and a better camera that can record video.
The new model will also be able to send picture messages, allow copy and pasting of text and a full search capability.
Apple is promising the new model will be up to two times faster than the iPhone 3G, and users will be able to take higher resolution photos and capture video using the new 3 megapixel camera.
Critics say the 3GS only does what was expected of the original
But once Apple's marketing boss Phil Schiller had got round to announcing the new iPhone's built-in compass, the audience in California had realised this was not a day that would change the mobile phone market very much.
For many users, the decision whether to buy an iPhone 3GS will come down to its price, regardless of how many new features it has.
Apple has not yet given details of how much the handset will cost in the UK.
In the US it is priced at $199 (£125) for the 16GB model, $299 (£187) for 32GB.
Other tweaks which set the iPhone 3GS apart from previous models include up to 32GB of storage, but that's only the same as the biggest iPod Touch.
Apple said it has sold more than 40m iPhones and iPod Touch devices, but the company is facing competition.
Palm will soon be releasing the new Pre phone in the UK, launched on the 02 network.
Whilst it has not generated as much hype as the iPhone, it has proved popular in the US and is seen as a big rival to Apple's product.
The new iPhone 3GS will be available in the UK from 19 June.