The iPhone 3GS was an industry-leading smartphone but fell significantly short in one specific area. The camera. While no other smartphone could offer the same functionality and app-savvy of the 3GS, so many other smartphones on the market were beating Apple on optics. 5-megapixel cameras, HD-quality video have been standard fare in the industry for some time, yet Apple has consistently put out phones that fell woefully short of the rest of the pack, until now.
The iPhone 4 camera now boasts a far more capable 5-megapixel camera, flash and ability to record 720p HD video. It's often said that the best camera for taking video or photos is the one you have on you when you need it. Unless you are a die-hard photog, most people are using their smartphone as their de facto camera. We suspect one of the primary reasons that 3G and 3GS owners will choose to upgrade to iPhone 4 will be specifically due to increase in quality of the camera.
Look at some HD video footage shot and edited on the iPhone 4, and you can clearly see why over 70% of new iPhone 4 owners are 'upgraders' from previous iPhones.
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