Interesting to hear that the Bold shares the iPhone’s erratic 3G connection because the device doesn’t share the same Infineon Technologies (IFX) chip believed to be the source of the iPhone’s troubles. Which means the only real point of commonality between the two phones is AT&T’s 3G network, which may still be a bit too immature for either of them.

(Image credit: magerleagues/Flickr)

(Image credit: magerleagues/Flickr)

I live in downtown Los Angeles, where 3G coverage is a given, and not only is the 3G wonky and unreliable, but oftentimes I’m struggling to even get decent Edge support! Edge is absolutely worse on my new 3G than it ever was on my first-generation iPhone. Adding insult to injury, I drop multiple calls every day, something that rarely happened before my ‘upgrade.’ “

– A post to Apple’s iPhone 3G discussion forum

Good thing the iPhone was chosen as Time Magazine’s 2007 Invention of the Year, because a growing chorus of discontent suggests its successor is unworthy of the honor in 2008. Voice and data reception issues have been troubling the device for weeks now and it seems the blame for them lies not with the network carriers, but with Apple (AAPL) itself. On Wednesday, T-Mobile Netherlands stepped forward to blame Apple for the reception issues with the iPhone 3G. “We suspect that it is a hardware/ software-specific issue of the iPhone itself,” the company said in a (poorly translated) blog post. In Australia, Vodafone also blamed the iPhone 3G’s reception issues on Apple. In Sweden, engineering weekly Ny Teknik claims that iPhone 3G’s sensitivity to third-generation wireless network signals is well below the 3G standard.

In the states, “well-placed sources” have told BusinessWeek that the Infineon Technologies (IFX) chip Apple chose for the handset is undermining its performance. And they are not the first to make such claims. Earlier this week, Nomura analyst Richard Windsor fingered the device’s chipset as the problem as well. “The 3G iPhone has been out for a month, but signs of problems are appearing that should give competitors some breathing space,” Windsor said in a report to clients. “Problems include high incidence of dropped calls, switching onto EDGE while the device is stationary and loss of reception while in good coverage. We believe that these issues are typical of an immature chipset and radio protocol stack where we are almost certain Infineon is the 3G supplier.”

So if that’s truly the case, what’s the solution? A firmware upgrade, most likely. Those “well-placed sources” mentioned earlier say Apple and Infineon are prepping one for September release. In the meantime, the companies are sticking with time-tested workaround: “no comment.“

When the iPhone was released in June, many developers were disappointed by the absence of an SDK for writing third-party applications on day one.

At D5, Steve Jobs explained to Walt Mossberg that Apple (AAPL) first needed to iron out some security issues before they would open up the device to outside developers:

We would like to solve this problem and if you could just be a little more patient with us, we’ll do it.”

–Steve Jobs at D5 on the availability of an iPhone SDK

Fast-forward to the first quarter of 2008, when Apple made good on its promise by releasing an early version of the iPhone SDK. The fruits of the patient developers’ labor was evident at the launch of the iTunes App Store, where 500 free or commercial applications were available to download onto the new iPhone 3G or the original iPhones running iPhone OS 2.0.

No longer were iPhone users confined to using Web applications running in Mobile Safari or resorting to jailbreaking their devices to use third-party programs.

The App Store made it dead simple for every iPhone user to duel their friends with PhoneSaber or satisfy their Dance Dance Revolution/Guitar Hero/Rock Band craving with Tap Tap Revenge, a game which recently celebrated its one millionth download.

At iPhoneDevCamp this year, there’s a greater and more palpable sense of excitement in the air than last year, and it’s reminding me of the time when I was writing applications for another Apple handheld product: the Newton.

While the green device from Apple was not a commercial success–it was surpassed in sales and popularity by the less-capable, yet smaller and more convenient Palm Pilot–the Newton nevertheless pioneered many features we now see perfected in the iPhone.

Fourteen years ago, the Newton could fax, send email and receive pages; the iPhone is a communications powerhouse with 3G/EDGE/Wi-Fi/Bluetooth.

Newton’s handwriting recognition was dramatically improved with Newton OS 2.0 in 1995; the iPhone has fantastic Chinese and Japanese character recognition.

Finally, the Newton promised a day when users everywhere had their own personal digital assistants in their pockets; today, millions of people have chosen their phone to be an iPhone.

Despite leading the Newton protest at Apple Computer in 1998, I admit that Jobs was right to cancel the Newton. He made the correct decision to focus the company’s efforts on Mac OS, and it’s paid off.

The iPhone, after all, is running a version of the same operating system powering today’s Macs. The release of the initial iPhone raised the bar significantly for mobile users tired of using the same-old devices from Palm, Microsoft, and Symbian.

At iPhoneDevCamp 2, the bar is rising even higher for native third-party applications. If you were excited about the first 1,000 apps, wait till you see what comes out this weekend!

Below are photos from Friday’s welcome reception at iPhoneDevCamp 2. For more information, visit the iPhoneDevCamp 2 web site.

On Friday, Apple (AAPL) is launching a second-generation iPhone, called the iPhone 3G, which addresses both of those problems, while retaining the look and feel of the first model’s hardware and software.

The base version of the new iPhone costs $199 — half the $399 price of its predecessor; the higher-capacity version is now $299, down from $499. Yet, this new iPhone is much, much faster at fetching data over cellphone networks because it uses a speedy cellular technology called 3G. And it now sports a GPS chip for better location sensing.

The company also is rolling out the second generation of its iPhone operating system, with some nice new features, including wireless synchronization with corporate email, calendars and address books. And there’s a new online store for third-party iPhone programs that Apple hopes will make the device usable for a wider variety of tasks, including gaming and productivity applications. This new software and store will also be available on older iPhones, through a free upgrade.

I’ve been testing the iPhone 3G for a couple of weeks, and have found that it mostly keeps its promises. In particular, I found that doing email and surfing the Internet typically was between three and five times as fast using AT&T’s 3G network as it was with the older AT&T network to which the first iPhone was limited.

Apple’s new iPhone operating system includes an ‘App store,’ where you can browse for, and download, third-party software.

The iPhone 3G is hardly the first phone to run on 3G networks, and it still costs more than some of its competitors. But overall, I found it to be a more capable version of an already excellent device. And now that it’s open to third-party programs, the iPhone has a chance to become a true computing platform with wide versatility.

There are two big hidden costs to the new iPhone’s faster speed and lower price tag. First, in my tests, the iPhone 3G’s battery was drained much more quickly in a typical day of use than the battery on the original iPhone, due to the higher power demands of 3G networks. This is an especially significant problem because, unlike most other smart phones, the iPhone has a sealed battery that can’t be replaced with a spare.

Second, Apple’s exclusive carrier in the U.S., AT&T Inc. (T), has effectively negated the iPhone’s up-front price cut by jacking up its monthly fee for unlimited data use by $10. Over the course of the two-year contract you must sign to get the lower hardware prices, that adds $240, overwhelming the $200 savings on the phone itself. If you want text messaging, the cost rises further. With the first iPhone, 200 text messages a month came free. Now, 200 messages will cost $5 a month, or another $120 over the two-year contract.

The iPhone 3G still has a couple of features that made the first version unpalatable to some potential buyers. It uses a virtual on-screen keyboard instead of a physical one. While I find the virtual keyboard easy and accurate, not everyone does. Also, in the U.S. and in many other countries, the iPhone is still tied to a single exclusive carrier, whose coverage or rate plans may be unacceptable to some.

Here is a rundown of the changes in the new model.

Design: The new iPhone looks almost exactly like the old one. It is the same length and width, has the same big, vivid screen, and has the same number and layout of buttons. The main difference is the back, which is now plastic instead of mostly metal and curved instead of flat. It’s very slightly thicker in the middle, with tapered edges, and weighs a tiny bit less.

The new iPhone 3G (left) delivers much higher Internet download speeds over cellular networks than the original iPhone (right).

Like its predecessor, the iPhone 3G comes in two models distinguished only by storage capacity: 8 gigabytes and 16 gigabytes. The top model is available in black or white.

Apple has greatly improved the audio on the new iPhone. I found the speaker was much louder, for music and for the speakerphone. But the new phone produced an echo when used with the built-in Bluetooth system in my car. Also, the headphone jack is now flush with the case instead of recessed as on the first model, so it can accept any standard stereo earphones.

The camera, however, is still bare-bones. It can’t record video and has a resolution of just two megapixels. The power adapter is now tiny, at least in the U.S., but Apple no longer includes a dock for charging, just a cable.

Software: The basic software is similar. The biggest addition for some users will be full compatibility with Microsoft’s (MSFT) widely used Exchange ActiveSync service, which many corporations use. In my tests, I was able to connect the iPhone 3G to my company’s Exchange servers in a few minutes, and my corporate email, calendar and contacts were replicated on the phone. Any changes I made on the iPhone were reflected almost instantly in Microsoft Outlook on my company PC, and vice versa. Email was pushed to the phone as soon as it was received on the company’s servers.

One drawback: While you can have both personal and Exchange email accounts on the new iPhone, if you synchronize with Exchange calendars and contacts, your personal calendar and contacts are erased.

The new iPhone and upgraded older iPhones also will be able to use a new Apple consumer service, MobileMe, which offers synchronized push email, calendars, photos and contacts.

There are other improvements. You can now delete multiple emails at once, set parental controls and search your contacts. You can also save photos in emails or from Web sites. You can also now open Microsoft PowerPoint files sent as attachments, though I found in my tests that opening larger PowerPoint files crashed the phone.

Some software features missing from the first iPhone are still AWOL on the new one. There’s no copy and paste function, no universal search, no instant messaging and no MMS for sending photos quickly between phones.

Network: Like the old iPhone, the new one can perform Internet tasks using either Wi-Fi wireless networking or the cellphone networks. But the addition of 3G cellular capability makes the new model more useful for Web surfing, email and other data tasks when you’re not in Wi-Fi range. In my tests, in Washington and New York, I got data speeds mostly ranging between 200 and 500 kilobits per second. By comparison, the original iPhone, tested in the same spots at the same time, mostly got cellular data speeds between 70 and 150 kbps on AT&T’s old EDGE network. The new iPhone typically was between three and five times as fast as the old one.

While AT&T now has 3G networks in 280 U.S. cities, and aims to be in 350 by year end, it is converting its cellphone towers gradually, so not all areas of included cities have 3G coverage. The new iPhone falls back to EDGE speeds when 3G isn’t present.

One side benefit to 3G is that in some areas, voice coverage improves. At my neighborhood shopping center, where the first iPhone got little or no AT&T service, the iPhone 3G registered strong coverage. But I still found that calls regularly broke up on some major streets. In New York City, riding in a taxi along the Hudson, one important call was dropped three times on the new iPhone. Finally, I borrowed a cheap Verizon (VZ) phone and got perfect reception.

Battery life: Apple claims that over 3G, the new iPhone can get five hours of talk time, or five hours of Internet use. Talk time is twice as long on the older EDGE network, and Internet time is an hour better with Wi-Fi.

I ran my own battery tests using the phone’s 3G capability. Although I left the Wi-Fi function on, I didn’t connect it to a network, so the phone had to rely on 3G. In my test of voice calling, I got 4 hours and 27 minutes, short of Apple’s maximum claim and nearly three hours less than what I recorded in the same test last year on the original iPhone. In my test of Internet use over 3G, I got 5 hours and 49 minutes, better than Apple’s claim, but far short of the nine hours I got using Wi-Fi in last year’s tests.

More important, in daily use, I found the battery indicator on the new 3G model slipping below 20% by early afternoon or midafternoon on some days, and it entirely ran out of juice on one day. I overcame this problem by learning to use Wi-Fi instead of 3G whenever possible, turning down the screen brightness and even turning off 3G altogether, which the phone permits.

The iPhone 3G’s battery life is comparable to, or better than, that of some other 3G competitors. But they have replaceable batteries. The iPhone doesn’t.

Third-party software: If things go as Apple hopes, third-party software could be the biggest attraction to the new iPhone 3G, and to upgraded older iPhones. By some estimates, there will be hundreds of these programs, some free and some paid, almost immediately.

Apple didn’t supply me with programs for testing, but I managed to try several on older devices upgraded to the new operating system. I tested a game that used the phone’s motion sensors to control the action, and I tested several programs from America Online (TWX), including AOL Instant Messenger; AOL Radio, which streams music from the Internet; and AOL’s Truveo video search engine. All worked very well.

Among the programs Apple has publicly previewed were a sales automation program from Salesforce.com, a game called Super Monkey Ball from Sega and a program for bidding on eBay (EBAY). Also made public were a news reader from the Associated Press, a program for following live games from Major League Baseball and several programs for doctors, including the Epocrates drug reference.

Bottom line: If you’ve been waiting to buy an iPhone until it dropped in price, or ran on faster cell networks, you might want to take the plunge, if you can live with the higher service costs and the weaker battery life. The same goes for those with existing iPhones who love the device but crave faster cellular data speeds. But if you already own an iPhone, and can usually use Wi-Fi for data, you probably should hold off and get the free software upgrade before deciding whether it’s worth getting the new hardware.

Find all of Walt Mossberg’s columns and videos online, free, at the All Things Digital Web site, walt.allthingsd.com. Email him at mossberg@wsj.com.

As technology continues to shrink, more features are being packed into these small mobile devices, making navigation and ease-of-use more important. This week, I tested the Motorola ROKR E8, which costs $199 with a two-year T-Mobile service agreement and makes a real attempt to be more user-friendly. The device, which comes out on July 7, isn’t much bigger than a typical cellphone but its standout feature is its keyboard, which dynamically changes to accommodate whatever you’re doing at the time, revealing only buttons that would be of use to that particular function.

The secret sauce on the ROKR E8 is its keyboard, which changes when it’s used as a phone, music device and camera.

The surface of the ROKR E8 has no physical keys at all. In its off or resting state, in fact, it’s just a black surface with rows of tiny, unlabeled bumps. But this surface is actually divided into two: The top half works like a typical cellphone display while the bottom half projects virtual keys onto its surface and uses the rows of bumps to give these keys a physical presence.

When making a call or sending a text message, the ROKR’s surface displays a regular phone keypad. But as soon as a music shortcut button is pressed, the surface morphs into five buttons for music navigation: play/pause, seek forward, seek backward, shuffle and repeat. Pressing another shortcut button to start the ROKR’s camera mode shows four buttons for zooming in or out, switching to playback mode or changing to video. Motorola (MOT) calls this its ModeShift technology. Though the lower half of the ROKR can be considered a touch device, objects can’t be manipulated with gestures like pinching or dragging as with the Apple (AAPL) iPhone’s multitouch screen.

Overall, I found that the ROKR E8′s dynamic keyboard gave me a real advantage in figuring out how to use the multi-functionality of the phone. Its changing keyboard eliminated a lot of guesswork and time that I may have spent hunting through menus for a command. And true to its name, the ROKR (pronounced “rocker”) is focused on its music phone functionality with an FM radio, a neatly organized music menu and a speaker that has convincingly simulated surround-sound effects.

But this ROKR didn’t always jam out in perfect pitch. A touch-sensitive semicircle in the center is meant to make scrolling through long lists easier — much like Apple Inc.’s iPod wheel. But because this tool on the ROKR isn’t a full circle, scrolling felt unsatisfying. You also can’t buy songs with the ROKR, or even mark songs for purchasing later on a PC.

And while the morphing buttons look futuristic and hip, I experienced a few instances when the phone was slow to react after I touched a button, as when I touched the seek forward button while listening to music or when I chose to open an MMS message I sent to a friend.

Twenty-two tiny bumps dot half of the ROKR’s surface, and the surface below each bump vibrates when it’s touched to provide sensory feedback. Nothing is ever physically pressed down, though the vibration response leads you to think otherwise.

A smart switch on the side can be held down to turn it on or off, or switched into the upward position to lock the device, preventing accidental calls or battery drain.

The ROKR E8 runs on T-Mobile’s (DT) GPRS/EDGE connection, which felt sluggish at times. And not even the dynamic keyboard on this device could help make email or instant messaging easier.

It has a two-megapixel still camera with an 8x digital zoom that can change into video-camera mode in one step. Two gigabytes of memory are built into the ROKR, and more memory can be added via a microSD card slot, which is hidden beneath a back panel. A one-gigabyte microSD card comes with the ROKR. Without this card, the internal memory will hold about 1,500 songs.

With help from a USB cord and Windows (MSFT) Media Player 11, I transferred over 200 MP3s onto my ROKR. Album art that transferred with my songs appeared on-screen as songs played, and the speaker gave off a powerful sound. Built-in stereo Bluetooth can send tunes to Bluetooth-enabled stereo speakers, and it took me just a few seconds to pair my ROKR with Motorola’s EQ5 speakers.

A preloaded program by Shazam lets users hold the ROKR up to any speaker playing a song, and in 30 seconds, identifies the track title, artist, and album art. I held the ROKR up to my alarm clock radio and it worked perfectly. But once these songs are recognized, the track data can’t be used to buy the song or even to transfer a request to buy that song to a PC for buying online at another time.

The ROKR’s FM radio will work only if its included stereo headset is plugged in because the headset has the radio antenna. But once the headset is plugged in, the radio will play via the ROKR’s speaker.

The ROKR E8 has an audio technology called Crystal Talk, which Motorola says allows your phone to perform better in loud environments. Even if the person on the other end of your phone is in a noisy place, the company says Crystal Talk will raise the volume to improve the call. I tested this by speaking to someone on the ROKR while turning a hairdryer on beside the phone. I then used a regular Razr cellphone. The person on the other end said that the ROKR sounded slightly, but noticeably, better.

Motorola’s ROKR E8 is a head-turning phone with many built-in advances that give it a smarter interface. One might wonder what other ModeShift functions the company will integrate into its devices in the future, such as a full QWERTY keyboard. The overall idea of a dynamic keyboard is a step ahead for small devices. It forces the phone to work more intuitively and improves navigation while looking stylishly sleek at the same time.

Edited by Walter S. Mossberg.

Write to Katherine Boehret at mossbergsolution@wsj.com

Good thing, too. Because we’re just weeks away from the eagerly anticipated launch of Apple’s 3G iPhone and AT&T–Apple’s exclusive wireless carrier in the states–certainly doesn’t want to foul up the debut of the second-generation iPhone, the way it did the first. Because if it does, AT&T Mobility CEO Ralph de la Vega won’t be activating his own 3G iPhone until it’s been surgically removed by a doctor. Apple (AAPL) CEO Steve Jobs does have a bit of a temper.

Anyway … AT&T’s network upgrade is just six markets away from first-phase completion in 275 cities (second-phase roll-out will extend it to another 75). And when it launches, it will be the first and only network to run on a technology called HSUPA, or High Speed Uplink Packet Access. HSUPA should provide speeds of 1.4 Mbps down and 800Kbps up, which AT&T asserts “will be as speedy as logging onto the high-speed Internet service that many consumers enjoy at home.”

Hope so, because logging onto AT&T’s Edge network is about as speedy as logging onto the Internet with a 56.6 Kbps fax/modem.

Good thing, too. Because we’re just weeks away from the eagerly anticipated launch of Apple’s 3G iPhone and AT&T–Apple’s exclusive wireless carrier in the states–certainly doesn’t want to foul up the debut of the second-generation iPhone, the way it did the first. Because if it does, AT&T Mobility CEO Ralph de la Vega won’t be activating his own 3G iPhone until it’s been surgically removed by a doctor. Apple (AAPL) CEO Steve Jobs does have a bit of a temper.

Anyway … AT&T’s network upgrade is just six markets away from first-phase completion in 275 cities (second-phase roll-out will extend it to another 75). And when it launches, it will be the first and only network to run on a technology called HSUPA, or High Speed Uplink Packet Access. HSUPA should provide speeds of 1.4 Mbps down and 800Kbps up, which AT&T asserts “will be as speedy as logging onto the high-speed Internet service that many consumers enjoy at home.”

Hope so, because logging onto AT&T’s Edge network is about as speedy as logging onto the Internet with a 56.6 Kbps fax/modem.

Not the most attractive of acquisition targets. But beauty is in the eye of the beholder, in this case T-Mobile parent Deutsche Telekom (DT) which is reportedly considering a bid for the wireless outfit, whose worsening losses have left it ripe for a buyout. By swallowing Sprint (S), DT could gain some spectrum in the States and stave off a price war between the mobile carriers, or so the “thinking” goes.

Thing is, an acquisition of Sprint entails an acquisition of Sprint’s problems–and there are many. It would also require DT, which operates a GSM/EDGE network, to manage Sprint’s 3G CDMA network and Nextel’s legacy iDEN system. That’s three different network standards. And then there’s Sprint’s WiMax operation, XHOM, to deal with. That’s the makings of a real Greek tragedy of a business story right there. Said Avian Securities analyst Matthew Thornton, “While the differing network technology standard does not necessarily eliminate the possibility of a deal, it does significantly raise the costs and complexity of the combination.”

Michael Nelson, an analyst at Stanford Group, agreed. “You really cannot underestimate the level of complexity that that entails,” he told Bloomberg. “There is a significant amount of integration risk.”

Not the most attractive of acquisition targets. But beauty is in the eye of the beholder, in this case T-Mobile parent Deutsche Telekom (DT) which is reportedly considering a bid for the wireless outfit, whose worsening losses have left it ripe for a buyout. By swallowing Sprint (S), DT could gain some spectrum in the States and stave off a price war between the mobile carriers, or so the “thinking” goes.

Thing is, an acquisition of Sprint entails an acquisition of Sprint’s problems–and there are many. It would also require DT, which operates a GSM/EDGE network, to manage Sprint’s 3G CDMA network and Nextel’s legacy iDEN system. That’s three different network standards. And then there’s Sprint’s WiMax operation, XHOM, to deal with. That’s the makings of a real Greek tragedy of a business story right there. Said Avian Securities analyst Matthew Thornton, “While the differing network technology standard does not necessarily eliminate the possibility of a deal, it does significantly raise the costs and complexity of the combination.”

Michael Nelson, an analyst at Stanford Group, agreed. “You really cannot underestimate the level of complexity that that entails,” he told Bloomberg. “There is a significant amount of integration risk.”

On TV, they announced a $40 government-issued coupon that is available to offset some of the cost of the new digital converter boxes we will need for our older television sets. How do I go about getting some?

You can apply for a coupon at a federal government Web site designed expressly for that purpose: www.dtv2009.gov. Or, you can call 1-888-DTV-2009 (1-888-388-2009). Each household can receive up to two of the $40 coupons, which look like plastic gift cards, but they can’t be combined to purchase a single converter box. Each coupon must be applied to the purchase of a separate box, which the government estimates will cost between $50 and $70 at popular electronics stores. Coupons also must be used within 90 days of the date on which they are mailed to the consumer.

Note that these converter boxes won’t be needed for about a year, and aren’t necessary for TV sets containing digital tuners, also called an “ATSC” tuner. Such tuners have been included in many TV sets sold in the U.S. since 2004, even if they aren’t high definition televisions. Converter boxes also aren’t needed for older analog TV sets that receive their programs via cable or satellite services or other pay services. They are needed only for older analog TV sets that depend on free, over-the-air programming, the kind usually received via an indoor or outdoor antenna.

Is it possible to transfer data from a computer with Windows 95 to a computer which uses Windows XP?

Yes, but the trick would be to figure out a medium for the transfer. Many, if not most, Windows 95 PCs don’t have USB ports, which rules out using a USB thumb drive or external USB hard disk as the transfer mechanism. If your old PC can burn CDs, that might be a good way to transfer your data.

Another option is buying a program like LapLink’s PCMover, which explicitly supports Windows 95 and can automate the process using either a network, removable media, or parallel cables. See laplink.com for details.

I’m thinking of getting an iPod Touch to replace both my iPod shuffle and Palm Pilot Vx. Does the Touch have as good address book and to-do functions as the Palm has? Does the Touch sync to the Mac’s Address Book, Mail, and Calendar software? If so, would it also sync to a Windows box?

The iPod Touch, and its close cousin, the iPhone, do have what I consider to be a very good address book, or Contacts program, though it may not have all the same features you use on your Palm. And that address book can be easily synchronized with a computer.

On a Mac, the iPhone and Touch Contacts can be synced with the built-in Address Book, or with Entourage, Microsoft’s Outlook equivalent. On a Windows PC, it can be synced with Microsoft’s Outlook; with Outlook Express (Windows Address Book) in Windows XP; or with Windows Contacts in Windows Vista.

The calendar on the Touch and iPhone can be synchronized with the Mac’s built-in calendar, with the calendar in Entourage, and with the calendar in Outlook on a Windows PC.

However, neither the Touch nor the iPhone includes a true to-do or task function, and neither synchronizes email with a computer. They do have a good email program, but it is intended to work on its own, fetching and sending email directly, rather than copying email from a computer.

You can find Mossberg’s Mailbox, and my other columns, online for free at the new All Things Digital Web site, http://walt.allthingsd.com.

Digital Cameras

Megapixels: This term describes the highest resolution photo a camera can take. Often mistaken as the most important factor in a digital camera, a high megapixel count — such as 10MP or more — isn’t necessary for the average user unless he or she plans on heavily editing or enlarging photos. Most new digicams offer between five and eight megapixels, which is usually more than enough.

Optical or Digital Zoom: Optical zoom, determined by the physical movement of a lens, matters much more than digital zoom, which digitally alters an image using the camera’s internal computer. Camera companies still try to confuse potential buyers by listing a camera’s total zoom, or the optical and digital zooms multiplied together. Ignore total zoom numbers and instead focus on optical, which now averages around 5x for many new cameras.

Image Stabilization: When generously sized LCD viewing screens started replacing optical viewfinders, they also forced users to hold their cameras at arm’s length, making for plenty of blurry photographs. To remedy this, camera manufacturers have added image stabilization, tools once found only in high-end SLR models. Optical (also called “mechanical”) and digital image stabilization correct for unsteady hands and moving subjects, respectively. Cameras with both types advertise dual image stabilization, which corrects for both situations and costs more.

Mobile Devices

HSDPA and EVDO: HSDPA, or High Speed Downlink Packet Access, is the name for AT&T‘s 3G, or third generation, mobile network that operates at roughly the speed of a slower DSL in a home. HSDPA is available in most major metropolitan areas and is seen as the competitor to Verizon and Sprint’s EVDO (Evolution Data Only) networks, though the popular iPhone runs on AT&T’s network using Wi-Fi and EDGE technology rather than HSDPA.

Multi-Touch Technology: Most popularly found on Apple’s iPhone and iPod touch, multi-touch is starting to show up in other products, such as in Microsoft‘s Surface, a coffee-table-like computer. Rather than just responding to on-screen touches, this technology enables moving, resizing and zooming pictures and Web pages using one or more fingers simultaneously. Look for many more devices — mobile and otherwise — to incorporate multi-touch in the future.

GPS: Global Positioning Systems are most often found in cars — either built-in or on portable devices from companies like Garmin and TomTom. These gadgets use satellite technology to determine geographic location, and high-end models even display Web content like news and weather along with directions. GPS integration in mobile devices can be used to plot routes in cars, can help users find nearby businesses while on the go and can link friends by showing one where the other is located and what they’re doing.

Digital Music

DRM: Digital rights management is a set of standards that protect the intellectual property rights of online content like music and videos, preventing it from being illegally distributed across the Web. In the past year, Vivendi‘s Universal Music Group, Apple and (most recently) Sony BMG said they will start selling DRM-free versions of songs, often for a higher price. In Apple’s iTunes store, these files are called “iTunes Plus” and aren’t restricted like other iTunes content.

MP3: MP3 files are open, without any DRM restrictions. Files that you rip (copy) from your own CDs are usually converted into MP3s, though iTunes users can automatically rip tracks into that program’s special format, called AAC. MP3 files can be uploaded to social-networking sites for sharing with friends and online communities.

These file types are protected by rights that tie them to specific players. Generally, AAC files make up the majority of tracks sold on Apple’s iTunes store and play only on Apple’s iPods; WMA files are Microsoft’s version of proprietary files.

Wi-Fi

The popularity of Wireless Fidelity, or Wi-Fi, brings this technology to more and more portable devices like the iPod Touch and Microsoft Zune and gives companies good reason to incorporate Wi-Fi receivers in new computers — laptops and desktops alike. While available in many flavors, different letters like b, g, a and n stand behind Wi-Fi’s more technical name, 802.11, to help discern one version from another according to characteristics like speed and compatibility. The latest version, “n,” offers the greatest range and speed, and “n” devices are usually compatible with earlier versions.

Televisions

HDTV: High-definition television has now become the standard, capable of displaying vastly better pictures, provided the source is also HD. Today’s more popular flat panel HD televisions are LCDs, or liquid crystal displays, though plasmas still hold their own. Recording HD content can’t be done with a regular digital video recorder; instead, a special HD recorder is required to capture this higher quality content.

480p vs. 1080i vs. 720p vs. 1080p: These numbers refer to the resolution, or sharpness, of a digital display, while “p” stands for progressive and “i” stands for interlaced. A resolution of 480p, known as EDTV or Enhanced Definition TV, is found most often in low-end plasmas or LCD screens. A TV with a resolution of 1080p is currently considered the Holy Grail, and costs the most. But 1080p pictures usually can’t be distinguished from less expensive 1080i or 720p pictures by average viewers at the typical distances from which most folks watch TV.

Blu-ray vs. HD DVD: Blu-ray and HD DVD are incompatible high-definition disc formats that continue to fight a seemingly endless battle to replace the DVD. The Blu-ray camp is led by Sony and the HD DVD camp is led by Toshiba. The two formats aren’t so different, technically speaking, but their very existence is confusing to consumers. The recent decision made by Time Warner‘s Warner Bros. to use Blu-ray gives Sony’s side a boost, and now Viacom‘s Paramount is rumored to be switching to Blu-ray from HD DVD. Dual-format players from Samsung and LG offer some solace.

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And so this morning, the company began offering prospective iPhone buyers a choice: purchase the device with a two-year T-Mobile service contract for 399 euros ($591) or without a contract for 999 euros ($1,478). And if for some reason you choose the latter, don’t expect your iPhone to be fully functional, because some iPhone services are only available with a T-Mobile subscription. Now which version of the device was it that you were interested in?

Analysts say that the arrival of an unlocked iPhone in the German market will likely signal the end of Apple’s exclusive deals with carriers, though that seems questionable given the unlocked phone’s dizzying price point and hamstrung feature set. Certainly, T-Mobile doesn’t seem too worried. “We have no doubt that the success story of the iPhone from Apple in Germany and T-Mobile will be updated,” T-Mobile Managing Director Philipp Humm said in a poorly translated press release. “The distribution model is correct, only because our customers will benefit from exclusive features and custom tariffs. The proper function of the iPhone in our network was tested for months, only T-Mobile offers data transmission standard EDGE nationwide, which the iPhone for fast Internet communications. No other mobile operator offers more WLAN-HotSpots as T-Mobile. I would like to assure our customers that T-Mobile as exclusive distribution partner of the iPhone continue to be the best package of network quality, service and competitive prices.”