Customers who'd like to carry more music, photos, and videos with them now have new models of iPhone and iPod touch with double the memory from which to choose. The revolutionary iPhone now comes in a new 16GB model for $499. It joins the 8GB model for $399. And the iPod touch now comes in a new 32GB model for $499. It joins the 16GB and 8GB models for $399 and $299, respectively.

iPhone Software Update 1.1.3, a free software update available today via iTunes 7.5 or later, brings significant new features to iPhone. After installing the update, iPhone customers will be able to automatically find their location using the redesigned Maps application; text message multiple people in one message; create Web Clips for their favorite websites; customize their home screen; and watch movies rented from the new iTunes Movie Rentals right on their iPhone.

On Monday, Symantec found a Trojan software identified as iPhone firmware 1.1.3 prep. "This Trojan claims to be a tool used to prepare the device for an upgrade to firmware version 1.1.3," the US-CERT advisory said. "When a user installs the Trojan, other application components are altered. If the Trojan is uninstalled, the affected applications may also be removed." The Trojan appears to be timed to exploit rumors that began in early December about new features in an upcoming iPhone firmware upgrade. Various online news sites and blogs cited a report published by CNET France that claimed an imminent iPhone update would feature a disk mode, for using the iPhone as a portable flash drive, and a voice recording mode. In a blog post here, Symantec security researcher Orla Cox said that "this is technically the first Trojan horse seen for the iPhone, however it does appear to be more of a prank than an actual threat,"

The first phone posted on our front page, is about to get 3G support sometime next year. Because we're a hardware and gaming site, phone news are not allowed, but since it's an Apple creation and not exactly a phone (it's an iPhone) we can make an exception once. At a meeting of the Churchill Club on Wednesday, AT&T CEO Randall Stephenson said: "You'll have it next year," when asked when a 3G iPhone would appear. AT&T is the exclusive mobile carrier for the iPhone in the US. Current iPhones connect to EDGE-based networks for intensive data-transmission chores such as browsing and email. EDGE advertises in-the-field download speeds in the 70Kbit/s to 135Kbit/s range, although its technical top end is 384Kbit/s. 3G networks use HSDPA/UMTS technology and boast download speeds between 600Kbit/s and 1.4Mbit/s. The iPhone's reliance on the much slower EDGE technology was roundly criticised before the smartphone was launched in June, and the issue has come up again as Apple released the iPhone in Europe, where 3G-based cellular networks are much more widespread than in the US. But in September, Apple CEO Steve Jobs made it plain that the iPhone would stick with EDGE for now because of power and battery issues.

That's right folks, for the low low price of €749, you can go to France and get your very own non-contract-binding iPhone from Orange. The iPhone is normally around €399, with a binding two-year contract. The fees add up as such: You buy a no-contract iPhone for €649, and if you want the iPhone unlocked, it'll cost you €100 more. The fee only applies for the first six months of iPhone ownership, however, so if you wait a while the unlocked iPhone will "only" cost €649. Anyone from the U.K. hoping to pick up a somewhat cheaper unlocked iPhone can expect to spend around £536 for the whole kit and caboodle. The iPhone goes on sale in France tonight.

Germany is the first country, other than France, to offer an unlocked iPhone. For €999 ($1481/£720), the German citizen can march over to T-mobile and purchase an iPhone devoid of contracts and locks. This is more than double the price of a stock iPhone, which is roughly €399. However, when you think about it, €999 actually isn't all that bad. After the initial €399 cost, T-Mobile iPhone customers are boxed into a 2-year contract. After all fees are said and done, iPhone customers would spend €1575 to maintain two years of service, which they are legally obligated to do, lest they incur early termination fees.

T-Mobile also announced that it would be happy to unlock iPhones already purchased, but did not name a price for this premium service at time of publication.

In Europe, it seems like the iPhone is greeted with nothing but tribulation and joy. After initial sales figures of 10,000 units were reported in the mid-afternoon of the first day of sales in Germany, one of the CEOs of T-mobile exclaimed "we're delighted". British sales were not much different. After stores opened their doors to queues seen camping out overnight, the BBC recorded scenes of "mayhem" in London. The iPhone goes on sale in France on November 29th, twenty days later than it did in Germany and the UK. However, the wait will be worth it: by French law, all mobile phones sold in France must come unlocked, to join whatever network the French customer chooses. Apple is working closely with French telecom companies to make sure that French iPhones do not make their way out of France, where a factory-unlocked iPhone would fetch a pretty penny.

Mobile email company Visto has launched a service that delivers corporate mobile email access on the iPhone. The Visto Mobile service lets iPhone users securely and easily access corporate email without downloading any additional software to the iPhone or requiring any changes to security policies or corporate firewall settings. The service is already available in the US and will be made available across Europe from today through Visto's website. Use of the service is free for the first 60 days, a video demonstration of the service in action is also available. Visto Mobile exploits the iPhone's user interface, which already allows users to send and receive attachments, receive rich HTML email and view e-mails as they were originally sent. Visto Mobile adds the corporate directory search capability, so individuals can search for any contact and either place a call, send an email or obtain driving directions by selecting the contact's phone number, email address or physical address.

Despite the utterly deplorable weather conditions in London last night, a small horde of dedicated iPhone enthusiasts was seen waiting in front of the local O2 store. Graham Gilbert, 22, officially has the honor of being the first man to be seen waiting for the iPhone in London. Graham has "been looking forward to the iPhone since it was announced in January." Once Graham has an iPhone, he plans to stick with O2, and not unlock/modify his iPhone. He his efforts to unlock the phone would be in vain every time Apple released a firmware update. The Apple iPhone die-hards will be able to get their hands on the iPhone at 6PM tonight, local time.

Apple has begun limiting sales of its popular iPhone to two per customer and no longer accepts cash for payment.

We're requiring a credit or debit card for payment to discourage unauthorized resellers,

said Apple spokesperson Natalie Kerris, calling the demand for the iPhone "off the charts." The previous limit was five iPhones per person, which tempted hackers to buy in quantity to resell or unlock them from their intended use with AT&T Mobility. This precaution is intended to lower the sale rate of phones, bought to be unlocked. The new restrictions are also aimed at ensuring enough iPhones for increased holiday sales. The iPhone will soon launch in Germany, the United Kingdom and France.

Despite all the bad press the iPhone has been getting in response to such allegations as locking people to a certain network and preventing third party applications from going on the iPhone, 82% of all people who've ever bought an iPhone are reported as being "very satisfied". The iPhone also makes up two percent of all phones on the street today, and 16% of all phone customers who plan on buying a new phone within the next six months are planning on getting an iPhone.

Big deal, most would say, every console or device that hopes to catch on needs an SDK (Software Development Kit), so that popular games and applications can run on the device. However, for quite a while, Apple seemed to think it was impervious to this law of the market. With the latest iPhone controversy however, involving lawsuits of network-locking and possible toxicity, Apple decided it was for the better if they let third-party developers put their stuff on the iPhone. An SDK will be shipped to anyone who wants one as soon as all the kinks are worked out, which Apple estimates to be some time in February 2008.

Lawyers filed a class action lawsuit against Apple and AT&T seeking $1.2 billion in damages because the iPhone is locked to AT&T's wireless network. The suit also notes that Apple will not allow unauthorized applications on the iPhone. Filed on behalf of Paul Holman in the State of Washington and Lucy Rivello in California, the lawsuit explains that in the United States the SIM chip is locked to the wireless carrier, not the hardware device. Damian Fernadez, the attorney who filed the state suit explains in court documents what Apple is accused of:

Apple punished consumers for exercising their rights to unlock their iPhones. Apple issued a software update that 'bricked' or otherwise caused iPhone malfunctions for consumers who unlocked their phones and installed the update. Apple's unlawful trust with AT&T substantially lessens competition and tends to create a monopoly in trade and commerce throughout the entire United States.

Apple and AT&T both declined to comment on the story.

Second anti-iPhone lawsuit in two weeks alleges that Apple violated antitrust laws. A California man filed a lawsuit accusing Apple Inc. of violating antitrust law because its iPhone forces buyers to use AT&T Inc. as their wireless carrier and the company "bricked" phones that had been modified to call over other networks. Timothy Smith filed the lawsuit Friday with a California state court in San Jose seeking class-action status. The suit demands that Apple be barred from selling locked iPhones and that it be required to provide warranty service for owners of unlocked devices. The lawsuit also asks for unspecified monetary damages. In the lawsuit Smith alleges that Apple violated several California antitrust statutes when it tied the smart phone to AT&T and prohibited customers from using other carriers. Click here to read the full story.

With Firmware v1.1.1, Apple aimed to do more than prevent users from accessing other networks: they were trying to fix critical security holes. While their efforts did work temporarily, hackers recently are proclaiming that they are cracking those security measures. Hackers claim that a special TIFF file can cause a buffer overflow error in Mobile Safari, rendering the iPhone itself vulnerable. While these hacks are nowhere near as easy to use as what was happening in previous versions of firmware, it's definitely a start. There is no word as to when firmware v1.1.1 will be hacked to the point where alternative networks are available for the iPhone.

IPhone firmware version 1.1.1 did a particularly nasty trick on anyone who had unlocked it via software: it rendered the iPhone unusable on any network other than AT&T in some cases, and in others, it "bricked" them, rendering them useless. Discussions on Apple boards were quickly locked down, and now a community of angry users is planning on suing Apple. The small group did not specify how much they plan on suing Apple for, but chances are, Apple is going to settle out of court.

Well, Apple did warn customers not to unlock their iPhones, and now the firm has taken steps to prevent it happening. With the launch of the new 1.1.1 update for Apple's new gadget, users will no longer be able to use third party SIM cards, they are instead restricted to AT&T only. Although there are some reports of unlocked iPhones becoming expensive paperweights, this seems rare and no more common than it is for locked phones, with most users instead finding themselves with a 'factory-fresh' iPhone with all the stock settings restored. But to be on the safe side, if you do have an unlocked iPhone it is recommended that you either don't download the latest update or you return your phone to its locked, factory state before you update it, with all the information you need available from Engadget.

Apple today released for the first time an official statement addressing iPhone unlocking software. The company said in a press release that it has discovered that "many of the unauthorized iPhone unlocking programs available on the Internet cause irreparable damage to the iPhone's software. In fact, the damage may be so serious that "the modified phone" could become "permanently inoperable when a future Apple-supplied iPhone software update is installed." Several iPhone unlocking products - free and fee-based - are available on the Internet today. Apple also noted that users who make unauthorized modifications to the software on their iPhone will violate their iPhone software license agreement and void the warranty.

Since the iPhone and the new iPod touch seems to be very similar in design, most people assume that they also use the same screen. However, Gizmodo has reported that the iPod touch screen's deep black colors are grayish and appears to be shimmering at times. The shadows also seem to be washed out compared to the iPhone's screen.

Apple Inc. said Monday it sold its one millionth iPhone on Sunday, just 74 days after its introduction and ahead of its expectations to hit the mark by the end of September. The news came less than a week after CEO Steve Jobs apologized for cutting the price last week from $599 to $399, offering $100 credits to people who paid the higer price. Apple cut the price of its 8GB iPhone on Wednesday and said it would phase out the 4GB version, which sold for $499. The steep price cut annoyed many customers who purchased the phone early, though others saw it as the expected consequence of being an early adopter.

Steve Jobs has received tons of emails from iPhone customers complaining about the $200 price cut on the iPhone only two months after it was released. After reading through every single one of the e-mails, he has now decided to offer every iPhone customer who purchased an iPhone from either Apple or AT&T a $100 store credit towards the purchase of any product at an Apple Retail Store or the Apple Online Store.

After releasing an entirely new lineup of iPods, Apple has also launched an iTunes Wi-Fi music store for the new iPod touch along with a new version of iTunes for customers to purchase ringtones for their iPhone. Customers must first pay $0.99 for a song from iTunes, then another $0.99 for the privilege of using that song as a ringtone. The new version of iTunes will include a utility to create ringtones based on any 30-second segment from a song complete with fade-in and fade-out. iPod touch owners will be able to use their Wi-Fi connection to logon to iTunes from any wireless hotspot to download individual songs or complete albums.

For more information, please visit Apple's Wi-Fi Music Store page.

The iPhone battery replacement policy is causing quite a lot of controversy. Some allege that it costs over $100USD to replace your iPhone's battery, including the cost of an iPhone rental while Apple replaces the battery on the iPhone you actually own. And so, it's only natural that consumers who feel they have been swindled start a class action lawsuit. Plaintiffs Zoltan Stiener and Ynez Stiener accuse Apple of breach of contract, fraud, and violations of California law for not telling users how expensive an iPhone replacement really is. This is the third time someone has tried to hit Apple with a class action lawsuit for the cited reasons, and Apple has settled in all the previous cases.

American teenager George Hotz enjoyed quite the busy summer this year. While simultaneously preparing for college, tinkering with his car, and working to complete several other projects, Hotz managed to find a risky (yet completely effective) method of unlocking the iPhone. While everyone else seems to think that the best way to unlock the iPhone is with a software program, Hotz unlocked it with an intricate 10-step technique involving soldering irons and voltage meters. And while it's not good for the day-to-day hardware modder, a factory could automate the process, and make a substantial amount of profit. Certicell founder Terry Diadone thinks so, and felt that the unlocked iPhone was worth a Nissan 350Z sports car, and three brand-new iPhones. George Hotz gladly accepted the offer, and the official trade was made on Saturday. Hotz drives off to college in style tomorrow, and will be giving away all three iPhones to his best benefactors and friends. While in college, Hotz plans to work with Certicell to do some consulting work, and to add GPS functionality to the iPhone.

If you think you can unlock the iPhone yourself, check out Hotz' blog here.

Iphoneunlocking.com, a subsidiary of UniquePhones (www.uniquephones.com), was poised and ready to release remote software unlocking services for the iphone today at 12 noon EST. The sale of unlocking codes is on hold after the company received a telephone call from a Menlo Park, California, law firm at approximately 2:54 a.m. this morning (GMT).

After saying they were phoning on behalf of AT&T, the law firm presented issues such as copyright infringement and illegal software dissemination. Uniquephones is taking legal advice to ascertain whether AT&T was sending a warning shot or directly threatening legal action. The logistics of different continents as well as it being a weekend factors into how the situation develops.