Is iPhone Insurance Worth It?

The iPhone is not an inexpensive cell phone to purchase. It is, on the other hand, susceptible to theft, damage and loss. You may leave it at a Starbucks one day and never being able to claim it back. If you can pay the hefty amount for an iPhone and a few extra dollars for that Grande Mocha Frappuccino, you can afford iPhone insurance. A small monthly fee could save you hundreds of dollars should anything happen to your iPhone. Till very recently, insurance providers were not offering iPhone insurance. Apple and AT&T still do not offer iPhone insurance. It may have been too expensive or too problematic for them.

The good news is that iPhone insurance is now readily available through third party providers. Many people ask themselves if iPhone insurance is really worth it. The following are a few reasons that provide the answer to that question.

First, it is important to look at the statistics regarding iPhone loss and damage. iPhone Water Damage Nearly 1.2 million phones face water damage in one year and thousands of them are iPhones. Once your phone falls into water, the chances of saving it are minimal to none. Apple is also keen on not allowing phone exchanges or returns in the event of water damage. Without insurance, the owner of a damaged iPhone will have to cough up a few hundreds to purchase another iPhone or simply downgrade to a less expensive cell phone. Losing an iPhone More than 1.6 million phones are lost every year and thousands of them happen to be iPhones.

As much as you call the last store you were at and look under the seat of your car, once an iPhone is lost, there is no way of getting it back. If you leave your iPhone unattended, chances are someone will decide to take it. Even if you decide to purchase a refurbished iPhone, you will be spending another 150 dollars at the least. Replacing your iPhone with a brand new one is going to cost you more than double that price.

In other words, rather than breaking the bank to replace your phone, you can purchase iPhone insurance. You will be required to pay monthly fees but the total fees added up at the end of the year will cost less than a new phone. In this case, iPhone insurance is worth it. When you have insurance coverage on your phone and you make a claim for loss or damage, you will be sent a replacement phone in no time.

It is important to do your research and find the best deals for insurance. Another crucial step to take is to check out the extent of coverage the insurance provides. This should include theft, loss, major damages, water damage and so on. A few scratches on your brand new iPhone are not included in the insurance policy. Be sure to check these conditions as well as the amount of time it takes to obtain your replacement. By understanding the financial burden you can potentially find yourself in when you lose your phone, it is more economical to invest in iPhone insurance instead.

UPDATE:  Here are some iPhone insurance providers

* DISCLAIMER: I am not affiliated in any way to either of these providers, and do not receive compensation in any form from them.

 

10 Ways to Score an iPhone 4 on Launch Day - Mobile and Wireless from eWeek

News Analysis: The iPhone 4 could be one of the most desired technology products to hit store shelves in years. And trying to find one in stores on June 24 will be difficult. But there are some strategies consumers can follow to get their hands on the smartphone that day.

With the iPhone 4 launching on June 24, consumers and even some enterprise customers are undoubtedly excited to finally get their hands on Apple's new smartphone. Such excitement is understandable. The device is arguably the best iPhone, at least on paper, that Apple has ever released.

Not only does it run the company's new iOS 4, which boasts multitasking, it includes a new feature called Face Time, which allows users to place video calls over Wi-Fi. Further, thanks to a new and improved display, the fidelity of the iPhone 4's touch screen should be second to none.

But most folks already know that. Now, they want to know how they can get their hands on an iPhone 4 on June 24. For some, pre-ordering was the way to go. Those that were lucky enough to get through the trials of pre-ordering an iPhone 4 on June 15 should have their smartphones in-hand that day.

But those that didn’t succeed in placing a confirmed pre-order or who simply don't want to wait until July to get the iPhone 4, need to find a way to buy one in-store on Friday. Admittedly, it will be a difficult task. Apple has said that it and its retail partners will have a small number of available iPhones for those that drop into the store. But they will be there. And they will go to the people that have the best strategy for getting one. Here are 10 stratagems that impatient customers can try if they want to get an iPhone 4 on launch day.

1. Get in line early

The first thing that anyone who wants to get an iPhone 4 on launch day should do is get in line at a store as early as possible. As previous releases of the iPhone have shown, those that get to stores early have a much better chance of getting their hands on a smartphone. Apple plans to have a small number of available iPhones in its retail outlets on launch day. That means that users in the top 20 are probably guaranteed to get their hands on an iPhone 4. But being in that top 20 will be extremely difficult. It requires getting in line extremely early. In fact, most customers might want to consider lining up the night before the iPhone 4 launches. 

2. Get ready to pay up

It might not be ideal, but if customers want an iPhone 4 badly enough, they can always show up a few minutes before the doors at the Apple Store or AT&T stores open and hand over some cash to folks towards the front of line. It seems that every year, some people are content to stand in line and wait for someone else to come up to them, pay them to take their spot, and walk away. Admittedly, those spots fetch some serious cash. And only the most ardent Apple fans will buy a spot in that line. But there is always that option. It just depends on whether or not a spot in an iPhone 4 line is really worth $500 to someone.

3. Go for a long drive

Although the big Apple Store or major AT&T store could be right down the road, those that get their hands on the iPhone 4 on launch day will be going to places where there isn't so much foot traffic. That's a key component in the success or failure of folks getting their iPhones on launch day. Everyone will be going to stores in major areas, meaning there will be long lines. But in out-of-the-way areas where AT&T stores or other locations aren't so popular, there is a greater chance of getting an iPhone 4. Simply put, getting an iPhone 4 is a numbers game.

4. Check for eBay, Craigslist postings

As soon as customers buy an iPhone 4 on launch day, they do one of two things: open it up and start using it, or put it on eBay or Craigslist to turn a quick profit. Although customers will end up paying more for the device, buying an iPhone 4 on eBay doesn't seem like such a bad idea. After all, it eliminates the need to stand in line and allows users to get it sooner, rather than later. Expect to pay a premium when buying an iPhone 4 online, but those that want it badly enough can certainly use it as an option.

5. Go to Best Buy or Walmart

Best Buy and Walmart are two of the many retail partners that Apple has inked deals with. And although Radio Shack might seem like a good place to go to pick up an iPhone 4, Best Buy or Walmart could be ideal. Both companies will have iPhones available in their stores on a first-come, first-serve basis. And considering most folks have been conditioned over the past few years to go to either Apple or AT&T retail outlets to get an iPhone 4 on launch day, the crowd might not be as big at either of the big-box retail outlets.

6. Don't waste time at Apple stores

The last thing consumers should do on June 24 is try their luck at an Apple Store. Yes, there is a chance that they will be able to get in line and buy a device before it's released. But the vast majority of customers will be going to an Apple Store to pick up an iPhone 4. Realizing that, it's best to keep away from those locations. Those that don't follow the tech industry so closely will only know of two places where they might be able to buy an iPhone 4 on launch day: AT&T and Apple. Stay away from those stores. It's a smart move.

7. Wait for folks on the way out

As mentioned, there are two types of iPhone customers on launch day: those that want to use the device, and those that want to sell it. Realizing that, waiting for customers that are willing to sell their iPhone 4 could be a solid strategy for most customers. Simply wait outside for someone to come out and ask them if they want to sell their iPhone 4. The vast majority of folks won’t want to sell. But there are always some who wait outside stores looking to make a quick deal. But beware: in previous years, some iPhone sellers have been asking nearly double the price of the iPhone 4's MSRP. 

8. Remember the past

When deciding what to do on iPhone 4 launch day, it's always a good idea to take a step back and evaluate how things went with previous iPhone releases. Each year, the iPhone's demand has steadily risen. On launch day back in 2007, consumers were able to walk into stores and pick up a new iPhone the very day it was released. In future years, only those that were quick enough to get to an Apple store or AT&T outlet in the morning were able to get their hands on Apple's smartphone. This year, a similar scenario will likely play out. Potential iPhone 4 owners should go back and look to see when customers were lining up last year. Based on that information, they should line up a few hours sooner. Demand really is that high.

9. Be prepared to go to multiple places

Those expecting to stay in one spot for an iPhone 4 could be in for a rude awakening. In the vast majority of cases, stores offering first-come, first-serve iPhones will have a very small number of available units. Realizing that, potential iPhone buyers should expect to go to multiple locations before they finally find a single place where the iPhone 4 is available. Yes, it might be a headache, but that's the reality of trying to get an iPhone 4 on launch day.

10. Work in teams

iPhone 4 customers should work in teams. By having more than one person out searching for an iPhone 4 at different locations, potential buyers can reduce the chances of missing a device at another retail outlet. One person can go to an AT&T store, the other person can go to a Best Buy location, and maybe another person can try an out-of-the-way spot. If it's just one or two iPhones they're looking for, the chances of getting one of Apple's smartphone on June 24 are that much higher.

The New iOS4 Shortcuts, Features, and Settings You Need to Know

The New iOS4 Shortcuts, Features, and Settings You Need to Know

ios4-bp.jpgApple just released iOS4 for the iPhone and iPod touch, and now that you've downloaded and upgraded to the much-hyped iDevice update, here's a look at the new shortcuts, settings, and features you'll need to know—and want to use.

The New Shortcuts

On a little device with just one button and no major forms of interaction beyond tapping a screen, shortcuts can be serious timesavers. Here are the new shortcuts in iOS4 you'll want to know:

  • folders.jpgHold then drag-and-drop to create app folders: You can now create folders to store and organize the apps on your iPhone's home screen, particularly handy if you're a bit of an app junkie. To create a folder, tap and hold any icon on the home screen until they all start wiggling. Then drag and drop any application on top of another to create a folder with those apps together.

  • close-out.jpgDouble-tap home for quick app switching: The quick app switching shortcut pulls up your most recently opened applications whenever you double-tap the home button. Then just tap on any app you want to quickly switch to it without going back to the home screen. Note: You'll need at least an iPhone 3GS or later generation iPod touch to use multitasking. Photo via Gizmodo

  • Hold to kill background apps: Currently in iOS4, if an application supports multitasking, it'll run in the background by default—kind of a strange choice, considering Apple asks you to confirm push notifications for apps. What this means is that as more apps start supporting background processing, you may end up with a ton of apps running in the background that you don't really need or want running. To remove an application from running in the background, just pull up your quick switch drawer (double-tap the home button), then tap and hold on an app (like you do when you want to delete an app from the home screen until you see a red minus sign (-) on the corner of the app's icon. Tap it to kill the app.
  • Swipe to the left in the app drawer for iPod controls: For some quick app-switching access to simple iPod controls, double-click the home button to bring up the app switcher, then swipe to the left for pared down iPod controls. Note: 3GS and above only.

The New Features You'll Want to Use

These are the handy new iOS4 in-app features you'll want to get familiar with:

  • universal-inbox.jpg
  • Unified inbox: If you access multiple email accounts from your phone but you'd prefer to be able to read through them in one unified stream, Mobile Mail now has a unified "All Inboxes" feature that does just that.

  • archive-delete.jpgMail Archives Rather than Deletes Gmail Messages: The whole archive vs. delete problem with Gmail on the iPhone has always been a bit annoying. In iOS4, the swipe-to-delete shortcut and regular old mailbox management defaults to Archive rather than Delete.

  • name-playlist.jpgName your new playlists: For years, creating new playlists on an iPod created a default "On-the-Go" playlist that you could later sync to your computer and rename from there. Now you can just create and name a proper playlist each time (rather than "On-the-Go 1", "On-the-Go 2", etc.).

  • spellcheck.jpgBuilt-in spellchecker: The new spellchecker introduces those oh-so-familiar red underlines for words that your device thinks you've misspelled. That's nice to have, but even better, tapping on a misspelled word will suggest proper spellings.
  • smart-link.jpgSmart links for dates: A lot of calendar events start off as email conversations. Now when you get an email with a date and time in it, Mobile Mail turns it into a link that can create a quick event in your Calendar and save the hassle of manually entering in that date that's right in front of you. It'll even automatically use the email's subject as the event title. Handy!

  • Bluetooth keyboard pairing: One of the things that's made the iPad extremely handy for writers is that you can pair it with an external Bluetooth keyboard for fast, hardware-keyboard typing. To pair a keyboard, go to Settings -> General -> Bluetooth, make sure it's turned on, then walk through the normal discovery/pairing process. Note: Bluetooth keyboards are not supported on 3G and earlier devices.

New Settings You Should Know

Now that you've learned the need-to-know shortcuts and features, here's a quick peek at the settings you should know:

  • threaded.jpgThreaded email: Mobile Mail now has a Gmail-like threaded email option to keep related email messages close together. This feature was actually enabled by default when I upgraded, but just in case, you can find it by going to Settings -> Mail, Contacts, Calendars and making sure Organize By Thread is toggled to the On position.

  • cell-data.jpgTurn off your cell data: Now that AT&T's moving toward metered data plans, you may have times that you get close enough to your limit where your best course of action will be to turn off your cellular data connection altogether rather than flirt with an extra $15 charge you don't need. To turn it off, go to Settings -> General -> Network and toggle Cellular Data to the off position.

  • wallpaper-iphone.jpgChange your home screen wallpaper: Okay, this one's mostly for eye candy, but if you always ached for some personality in your home screen background, fire up Settings -> Wallpaper, pick an image you want to use, and set it as your home screen wallpaper. Note: We can't really imagine what possible reason there is for this one, but you can't set a wallpaper for the home screen on 3G or first generation iPhones. Photo via Gizmodo

  • simple-passcode-off.jpgStrong alphanumeric lock codes: A few months back we showed you how to add an alphanumeric passcode lock to your iPhone. Now to do the same, all you've got to do is go to Settings -> General -> Passcode Lock, toggle Simple Passcode to off, and enter your preferred alphanumeric pass.

  • Tethering: Okay, you'll have to pay AT&T a whopping $20 a month for the privilege of tethering, but at least it's finally an option. To turn it on, head to Settings -> General -> Network -> Internet Tethering.
  • keyboard.jpgTweak your keyboard layout: If you prefer a different keyboard layout from the standard QWERTY, head to Settings -> General -> Keyboard -> International Keyboards -> English to try out an alternative layout for your software or connected hardware keyboard.


Got a favorite feature in iOS4 that we didn't highlight that you think deserves a mention? Share it in the comments.

Hands on with iPhone 4 Review

Hands on with iPhone 4

We spend some quality time with Apple’s latest phone—here’s what to expect

As Steve Jobs would have it, the iPhone 4 unveiled Monday represents the biggest revision for the iPhone since the device’s original 2007 release. Looking back now, it’s tempting to lump the iPhone 3G and the 3GS into a single category. It’s not hard to see the latter as an incremental improvement on the former—the two had more in common than not, and the devices were almost exactly the same.

16GB iPhone 4

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From that perspective, then, the iPhone 4 is certainly a radical departure. With its flat, glass back and stainless steel edges, it might remind you more of a Braun appliance than a cell phone. The iPhone 4 is a brand new device from the inside out, and when you get your hands on one, you’ll be able to tell in an instant that this is a different beast from its predecessor.

We had the chance to spend a half an hour with the iPhone 4 in its natural habitat: an Apple-designed demonstration center in the Moscone West convention center, right after Steve Jobs’s 2010 Worldwide Developers Conference keynote. So we tried as many of its new features as we could, and got a feel for Apple’s most significant iPhone upgrade yet.

The look and feel

Despite the new phone’s outwardly different appearance, some things haven’t changed. When you first heft the iPhone 4, you still get the sense that it is an extremely solid, well-put-together device. According to Apple’s specs, the iPhone 4 is a tenth of an ounce heavier than its predecessor, the 3GS, though as it measures in at a narrower 2.31 inches (to the 3GS’s 2.4 inches) and a thinner .37 inches (compared to the 3GS’s .48 inches), you get the impression of an incredibly dense device. And somehow, as with every subsequent iteration of an Apple product, the company has managed to make its earlier designs look almost clunky by comparison—using the device gives you the impression that this is the handset that Apple has been waiting to make for the last three years.

Both the back and front of the phone are now made of glass, coated with the same oleophobic layer used on the 3GS. The display units we used had a slightly tacky feeling to them; it’s hard to tell whether or not they’ll be prone to sliding off of inclined surfaces. Apple claims the glass is 30 times stronger than plastic and rivals sapphire crystals for strength. While we hesitated to throw the new iPhone to the floor and jump up and down on it (though we’re sure our colleagues at PCWorld will jump at the chance when they buy their own iPhone 4 on June 24), the 3GS’s screen has proved to be extremely durable and, in many cases, more resistant to scratching than its plastic back; we expect the iPhone 4 to boast similar resiliency.

One side effect of making both the face and the back of the phone glass is that, at last, the differences between the white and black iPhone models now really mean something. In the iPhone 3G and 3GS, white and black models looked pretty much the same when viewed from the front. That’s not true anymore: if you’re using a white iPhone, you’ll know it—it’s white front and back. With the product’s straight edges, stainless steel sides, and round, dimpled home button, the white model especially hearkens back to the original iPod.

The left side of the phone now features a pair of round, metal volume buttons rather than the rocker switch of earlier models. The buttons are nice, in that they require firm pressure to activate and they give a pleasant response under your fingers; it feels less likely that you’ll hit one by accident or that the volume will get changed when you slide your phone in a bag. They also have subtle + and - symbols engraved in them, letting you identify them by feel. The mute switch has also been changed; no longer the angled switch of previous iPhones, it just slides up or down; when it’s on mute, there’s a thin orange line to let you know that it’s on silent mode. Like the volume buttons, the new switch seems less likely to get triggered by accident, a problem we’ve even had when just slipping a iPhone 3GS into a pocket.

Apple has also moved the SIM card to the right side of the phone, and changed it from the full-size card found in previous models to the micro-SIM used in the iPad. According to Jobs, this was done largely out of space concerns.

Besides the usual Sleep/Wake button and headphone jack on the top of the phone, Apple’s also added a second microphone for noise canceling. Unfortunately, we didn’t have an opportunity to try out the calling features on the iPhone 4, so an assessment of whether or not that noise-cancellation lives up to its name will have to wait until we get a chance to put the device through its paces later this month.

The display

Apple calls the display on the iPhone 4 a “Retina display,” a slightly creepy name for an astounding piece of engineering. At 960 by 640 pixels, the iPhone 4 display is double the screen resolution of its predecessors. At 326 pixels per inch, the iPhone 4’s display offers a level of legibility that you’ve come to expect from the printed page, not a computer. The original iPhone’s high-resolution screen (163 pixels per inch) was already a huge step up from what we’d expected from a computer display, but the iPhone 4’s screen is in a completely different category.

We placed an iPhone 3GS and an iPhone 4 side by side. The results were readily apparent. Text on the iPhone 3GS, while quite readable, showed noticeable pixelation. We couldn’t pick out any pixels on the iPhone 4’s text; as Apple claims, this screen really makes text look like something you’d find in a book or a magazine, with none of the artifacts that we’ve come to expect from a LCD display.

The screen uses the same in-plane switching (IPS) techniques used on the displays in all the iMacs and in the iPad. As a result, the display is bright and colorful, with a massive viewing angle that really does look great, no matter which way you hold it.

Photos and videos are absolutely spectacular on the iPhone 4. It really is like looking at a self-illuminated photographic print, not a computer image. High-resolution videos play smoothly and look immaculate.

Cameras, photo, videos

We got to spend some time playing with the iPhone 4’s two cameras. The rear camera is a 5-megapixel model, up from 3 megapixels on the iPhone 3GS. But megapixels aren’t everything—in fact, the iPhone 3GS camera creates better output than many smartphone cameras with more megapixels. This new camera appears to follow in its predecessor’s footsteps, though we were only able to shoot in a controlled environment in Apple’s demo area. The photos we took looked great in preview mode on the phone; we look forward to doing a more thorough analysis when we get our own iPhone 4 and use it to shoot in more varied environments.

Also new to the rear-facing camera is an LED flash. When you turn the flash on and press the shutter button, the LED flashes once to allow the camera to meter the brightness, and then a second time to take the picture. The results seemed decent, though we’ve learned from other smartphones that an LED flash isn’t always the best choice if there’s enough light to shoot without. Still, for most people the LED flash means that you’ll always be able to take a picture, even if it’s getting pretty dark. (You can set the flash to never fire, always fire, or fire automatically when the camera senses that you need it.)

The iPhone 4’s front-facing camera isn’t a 5-megapixel wonder; it’s a 640-by-480-pixel camera (three-tenths of a megapixel, if you’re curious) designed to be used primarily with the new FaceTime video-chat system, though it will also work well as a way to take self-portraits. You can flip between the front and rear camera from within the Camera app, as well as when you’re using FaceTime.

FaceTime itself worked great in the demos we saw carried out by Apple’s employees. Video quality in the FaceTime chats seemed somewhat variable; it’s definitely not a high-def video experience, but it doesn’t really need to be. (But as we learned from iChat AV, the real test with video chatting is when you try to start a chat from various and obscure network conditions.) Starting a chat couldn’t be easier, however. You dial a friend with an iPhone 4, and then tap the FaceTime icon in the Phone app to initiate a video call. There’s no app to launch and no buddy list to configure. It’s a very cool idea, though it does make us wonder what will happen when other devices—those without phone numbers, for example—join the FaceTime party.

Once you’re in a FaceTime conversation, you can readily switch between landscape and portrait orientations, or jump back and forth between the iPhone 4’s front- and rear-facing cameras—in case you want to show your conversation partner what you’re looking at. As in iChat on the Mac, there’s a small window that shows what your camera is seeing, and you can drag that pane into any of the screen’s corners.

The Software

We got to spend a few minutes using two new iPhone apps, iMovie and iBooks. Given just how much processing power is required to edit video, iMovie’s performance was impressive. It felt very smooth. And the iMovie interface seems, if anything, more suited for the iPhone’s touch interface than for the Mac interface. Trimming a clip is a simple as tapping on it and dragging a pin right or left. Now you can shoot your kid’s dance recital, edit it together, and ship it out to friends and relatives before the dance teacher has finished her thank-yous at the end of the night.

iBooks on the iPhone 4 takes great advantage of the new phone’s high-resolution screen. Text is amazingly crisp. When we tried to flip over into PDF view, we did notice that there were some pauses when zooming in to a large PDF document. But once the zoomed-in portions of the PDF appeared, they were immaculately rendered.

Coming soon

Now the wait begins. But at least it’s not a long one: Apple will be taking pre-orders for the iPhone 4 in seven days, and shipping it in 16. By the time July rolls around, you won’t need to rely on us to answer your questions about this new direction for Apple’s iPhone line—you’ll be able to find out yourself. In the meantime, though, we’d be happy to answer anything we can on the topic.

[Dan Moren is a Macworld Senior Associate Editor and previously reviewed iPhone OS 2.0 and 3.0. Jason Snell is Macworld’s Editorial Director and has reviewed all previous iPhone models.]

Multitasking tops tentpole features in iPhone 4.0

Multitasking tops tentpole features in iPhone 4.0

Category | Software » Mobile

Apple on Thursday gave a sneak peek at a developer preview of iPhone OS 4.0, the next major version of its operating system for mobile devices.

Apple CEO Steve Jobs boasted over 1500 new application programming interfaces (APIs) for developers in iPhone 4.0, letting them access features like the iPhone’s calendar, photo library, video-camera data, and more. App creators can also take advantage of OS X features like Quick Look, in-app SMS, and more. Plus, there are over 2000 APIs for hardware-accelerated math functions.

In addition, iPhone 4.0 boasts more than 100 new user features, such as playlist creation, 5x digital zoom in the camera app, tap-to-focus for video, auto photo-geotagging, the addition of Places functionality, the ability to change the Home screen wallpaper, improved spell-checking, and support for Bluetooth keyboards. Many of the features added are already available on the iPad, which currently runs iPhone OS 3.2.

Instead of running down the entire extensive list, Jobs focused on seven “tentpole” features that will be part of iPhone 4.0.

Multitasking

Perhaps the most long-awaited iPhone feature, iPhone 4.0 will bring multitasking capability to Apple’s devices. As with copy-and-paste, Jobs acknowledged that Apple wasn’t the first to implement multitasking, but he insisted that Apple would be the best, by coming up with a way that doesn’t degrade the performance of the app users run in the foreground and doesn’t drain battery life as significantly as it might.

In order to switch applications, users double-click the Home button which summons a dock-like window showing all running applications; tap on an app to switch to it. If you’re playing a game, it will pause when you switch, and you’ll be able to resume right where you left off when you switch back.

By default, that dock shows you four running applications, but if you have more running at one time, you can swipe left to see the rest of them.

Apple senior vice president of iPhone software Scott Forstall went into how Apple implemented multitasking while avoiding the potential pitfalls. Forstall said Apple looked at existing iPhone applications in the App Store and tried to identify what services are needed in the background—Apple then wrote their own code to implement those services, which it turn made available to third-party developers as APIs. That way, the system is responsible for maintaining battery life and performance, rather than having each additional app try and figure it out.

Forstall enumerated seven areas where it would be providing background APIs. The first was audio, for apps such as Pandora. Pandora founder Tim Westergren showed off how the app used Apple’s new technology, a change he said took only a few hours. In addition, controls are even available: by double-tapping the Home screen, you can summon the familiar floating iPod control window with controls for Pandora. You can even buy media from iTunes without interrupting the playback.

The second background task is Voice over IP (VoIP). Apple showed off the Skype app taking advantage of background processes. Users can be on Skype calls and do other tasks; in fact, users can even receive Skype calls while the iPhone is locked and Skype isn’t running. When users receive a Skype call, they are alerted via a pop-up notification with a custom sound, which allows them to answer the call. The iPhone also displays a red status bar to alert the user that they are still in Skype.

Location services are the third background API. You can continue to get directions from turn-by-turn GPS apps, even while performing other tasks such as listening to music in the iPod app.

The fourth background API is also location-based. Some applications use location information, such as Loopt, but they don’t require GPS to be always-on, so instead Apple uses cell phone location information. When a user switches cell phone towers, it can indicate to the service that location has changed.

Apple realizes that privacy is important when it comes to location information, so it’s adding an indicator in the menu bar, next to the battery icon, to let you know if an application has requested your location any time in the past 24 hours. And preferences will allow you to disable or enable location for each app.

The fifth background API is push notifications, to which Apple has added a new service called Local Notifications. This lets apps launch notifications without the need for an external server: so, as Forstall suggested, you can have a TV guide app that alerts you when a show is beginning.

Task completion is the sixth background API, and it’s designed for apps that can take a while to finish certain tasks: for example, uploading photographs to Flickr. Now you can switch to other apps and let Flickr finish its business.

Then there’s the seventh and final background API, Fast App Switching, which allows an app to dump all information related to its current state and then go into a sleep-like mode where it consumes no processor power. But, when you switch back to the app, everything returns to exactly the point where you left it.

Folders

Finally, an answer to the problem of having too many apps. Steve Jobs showed off a Folders feature for the iPhone’s Home screen, allowing users to group applications. When you’re editing your Home screen, you can drag one app on top of another app to automatically created a folder. The iPhone automatically names folders based on the categories of the apps.

So, for example, you can create a Games folder merely by dropping one game on top of another. The folder icon displays a small set of tiles showing you which apps are inside, and you can drag the folder anywhere on the Home screen, just like an app icon. There’s no limit to the number of the folders you can have, and it’s even possible to put one in the iPhone’s Dock. The addition of folders means the iPhone now lets you easily see up more than 2000 apps.

In a move borrowed from the iPad, iPhone 4.0 also lets you change the background wallpaper on your iPhone’s Home screen—this can either be the same as the lock screen’s wallpaper or an entirely different image.

Mail

Apple severely revamped the Mail application in iPhone 4.0, adding support for new features such as a unified inbox, that allows you to see all incoming mail from multiple accounts; you can also quickly jump between inboxes for multiple accounts. In addition, Mail also now supports more than one Exchange account at a time, and you can also organize by thread.

Attachments are enhanced as well: you can now tap files attached to e-mail messages to open them in a separate application, including third-party apps.

iBooks on iPhone

In another borrowed feature from the iPad, Apple will be making iBooks available to the iPhone in iPhone OS 4.0. It’s a smaller version of the iPad app, but allows the same features, including purchasing from the iBookstore. And you’ll be able to sync your place and bookmarks between multiple devices: leave off reading a book on your iPad, and you can start reading it in the same place on your iPhone.

Enterprise features

iPhone 4.0 has added new features for business users. At the top of the list is better data protection: all e-mail, including attachements, can be encrypted with your PIN code. And Apple will make encryption APIs available to third-party developers, allowing them to do the same with data stored in those apps.

Apple’s also rolling out improvements for mobile device management, for those companies that deploy large numbers of iPhones. Companies can now wirelessly distribute applications anywhere in the world from their own servers. In addition, there’s the aforementioned support for multiple Exchange accounts, and support for Exchange Server 2010. Plus, Apple is supporting SSL VPN for both Juniper and Cisco.

Game Center

Billed as a “developer preview” in iPhone OS 4, Apple announced a social-gaming network called Game Center, which seems poised to compete with services such as Xbox Live and the PlayStation Network. You’ll be able to invite friends, participate in online matchmaking, compete in leaderboards, earn achievements, and more. While available first to developers—presumably so they can integrate the functionality in their apps—Game Center will roll out to end users later this year.

iAd

As was widely rumored, Apple announced its own built-in advertising system for the iPhone OS, iAd. Developers to incorporate ads into their application and use both video and interactive elements without taking users out of the current application. And the system is built entirely on HTML5.

“It’s all about helping our developers make money through advertising so they can keep their free apps free,” said Jobs.

Availability and compatibility

While Apple is releasing a developer preview of iPhone 4.0 on Thursday, it won’t be available to end users until this summer. And not all devices will be able to reap all the benefits. Owners of the iPhone 3GS and third-generation iPod touch should be able to run all the features, but iPhone 3G and second-generation iPod touch owners will only support some of the features—for instance, those devices will not be able to use the multitasking features.

As for Apple’s newest device, the iPad, Jobs said that iPhone 4.0 will arrive on the tablet device sometime this fall.

Updated at 11:05 PT with information on availability and compatibility.

Macworld will update this report with more details as they become available.

My take: I have been wanted a better way to organize my apps as I know have 7 screens to scroll through on my iPhone. This will be accomplished with Folders. [jumping up and down] Unified mailbox is another great upgrade!