Friday is launch day for the next-generation Apple iPhone. If you’re planning to buy one, here’s what you need to know:

What’s new?

• GPS that pinpoints the phone’s exact location. This lets users find more precise directions and geo-tags photos (automatically showing where photos were taken on a map)

• A 3G connection for faster loading of web pages, sending photos and downloading e-mails. (The image below is Apple’s estimated difference in speed between the old iPhone running EDGE and the new iPhone using a 3G connection.)

• Improved audio: Some people complained the phone’s speakers were not loud enough. The spot for plugging in headphones is flush (the old phone’s plug-in was different than iPods and such — requiring an adapter to use most headphones).

• Two versions of the iPhone will be sold: an 8GB version in black for $199 and a 16GB version in white or black for $299. The phone looks much like the current iPhone, but the buttons are all metal. It’s also a little bit thinner and the back is all black or white plastic rather than brushed metal.

• A new two year AT&T rate plan is required when buying the new iPhone, sold separately.
  

What about purchasing the new iPhone?

• The iPhones will go on sale at 8 a.m. Friday at Apple and AT&T stores. Here’s a link to find your closest stores. Apple won’t say how many iPhones will be at each store. Last year, Apple stores generally had more iPhones in stock than AT&T stores. But, some AT&T stores had plenty leftover because they were overlooked by iPhone buyers heading straight to O.C.’s five Apple stores. One tip: The 16GB iPhones will probably sell out first, just as the 8GB iPhones sold out before the 4GB versions last year.

• iPhone buyers must activate the iPhones at time of purchase. Buyers must bring a credit card, Social Security number, valid government-issued photo ID and current wireless account number and password or PIN (if new to AT&T). Apple says current iPhone owners buying the new phone should remember to sync it one last time before getting the new 3G iPhone.

• AT&T says pricing on the new phone will be $30 a month for 3G data plans plus voice plans starting at $39.99 a month. Unlimited 3G data plans for business users will be $45 a month, plus a voice plan.

• There are no discounts for current owners. But if you purchased an iPhone on or after May 27, you’ll be able to exchange it for the new iPhone “without incurring an additional handset charge,” says AT&T. For owners of iPhone prior to May 27, you’ll have to fork over the $199 or more for the new phone and extend your contract for 2 more years.

Related:

• The iPhone 3G will make YOU money! Tips include using the iPhone instead buying GPS for the car, saving gas by checking and avoiding traffic congestion, and get coupons based on location could save you $920. (OtisKimzey.com)
• More Apps for your iPhone Modmyifone.com)
• Will anyone use their iPhone to, umm, make calls? (Rob Montgomery’s blog)
• iPhone ringtones, how to save money (Two a day)
• The top 10 iPhone applications (Informit.com)
• New iPhone leaves iGirl wanting more (Gadgetress)
• iGirl’s iPhone 2.0 wrap-up: Cheaper, faster, better! (Gadgetress)
• Let the live Apple iPhone 2.0 coverage begin! (Gadgetress)
• Twitter’s alive with the sound of iPhone (Gadgetress)
• Freebies for Mac and iPhone fans (Gadgetress)

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