The 2nd generation iPhone. Faster because it runs on the 3G network. Can be used as an iPod. You don’t need to carry an iPod and a mobile phone. Just one iPhone. Just remember that iTunes is used for backing up iPhone data in case you need to replace your iPhone (water damage anybody?) or upgrade to a newer version.

To use an unlocked iPhone, you must have a plan with a mobile provider that uses a sim card. So AT&T and T-Mobile come to mind for US-based users, Rogers in Canada, Orange in many European countries, Hutchison in Australia, and a whole host of others globally.

iPhone 3G comes in 2 storage configuration, 16GB (below) and 8GB.