Five Things We Want From The Next iPhone (AAPL)

As expected, the 3G iPhone is more a software -- and price tag -- update than a whole new toy. But it doesn't have to be.

Because the iPhone is driven by a powerful operating system, it's possible for Apple (AAPL) -- and now, third-party developers -- to add all sorts of features via software updates, which means that iPhone owners will be able to add features to their machines without opening the case or swapping units. But some items on our wish-list -- more storage, for example -- would involve a bona-fide upgrade. What we'd like to see in iPhone 2.5:

Video recording. This is such a no-brainer we can't figure out why it wasn't included in yesterday's update. Recording (and conferencing via) video is a strong selling point for Apple's MacBooks and iMac; it's surprising they haven't designed a video recording app for the iPhone. (We're less thrilled about the idea of video phone calls via shaky cellphone, so we're not asking for a second, front-side camera.)

More storage. If the iPod touch can have a 32-gig drive, the iPhone should, too. (Especially if we're shooting video!) Perhaps Apple wanted to make a splash with phones that were at least $100 below the old iPhone's $399 minimum price, but we think a lot of people would spend $400 for a 32-gig iPhone. We expect to see this rolled out before the holiday shopping season.

iPhone/MacBook tethering. If the iPhone is such an awesome 3G Web browsing machine, how about a little USB or Bluetooth trick so our MacBook computer can use the iPhone's 3G connection when we're not at a wi-fi hotspot? Another why-can-my-old-Treo-do-this-but-you-can't feature. Many people will happily pay $20+ more a month for this convenience. Could probably be done via software update.

Wi-fi synching. Sometimes we're away from our computer for a few days, and we'd like to grab some fresh music, synch our calendar, or whatever -- over the Internet. We understand why AT&T (T) wouldn't like us synching a few gigabytes of music over their 3G network. And we know Apple wants us to spend $99 a year on "Mobile Me" to synch our "push" calendar over the air. But we don't think this is an unreasonable (free) feature over wi-fi.

Better camera. A 2 megapixel digital camera just doesn't cut it. A 5MP -- or even 4MP -- camera might convince us to leave our Canon at home. Now we'll have to hope the Eye-fi folks make a cool iPhone uploading app.

What's on your wish list? Fill in comments below, email me directly at dfrommer@alleyinsider.com, or tip anonymously.

See Also:
Apple's New iPhone Strategy: More Units, Less Revenue
iPhone 3G No-Shows: Adobe Flash, Video Recording, Copy And Paste
Apple's iPhone 2.0: $199, 3G, On Sale July 11