But perhaps the biggest edge the iPhone 3G S' camera has over the Pre is its video recording capability. You can record 30fps VGA video with audio by simply going into the camera app and switching from still to movie. Autofocus, auto white balance and auto exposure features apply to video, as well.

Video recording was long overdue for the iPhone, especially since it is a feature that most low to mid-range phones carry. Even better: You can edit your videos with a tap of the finger by picking an in-point and end-point and hitting "trim." Then, you can tap the share button to send over e-mail, MMS, MobileMe gallery or YouTube-pretty cool.

But the new iPhone 3G S also matches in features some of software advantages the Pre had over the 3G model. The 3G S has now copy and paste, MMS, tethering (coming later this year), A2DP Bluetooth capability, geotagging (photo and video) and turn-by-turn navigations.

While none of the two phones features a FM receiver/transmitter, the iPhone 3G S has a built-in digital compass and voice controls over the Palm Pre. On the downside, the new iPhone still doesn't feature a removable battery or a hardware keyboard (but nobody was expecting the 3G S to have one anyway).

There is also an essential advantage the iPhone 3G S has over the Palm Pre -- it's the App Store. Apple packs over 50,000 apps in its store while is still at the beginning of the road, with 12 apps available and a store in beta stage.