iPhone 4 announced; what's new and what to do with your old iPhone

As expected, the new iPhone, called the iPhone 4 was announced by Steve Jobs at the Apple Worldwide Developer Conference today in San Francisco. The new iPhone is running the iPhone 4.0 OS, which enables multitasking, new notifications, iBooks, a Game Center and more. In addition to powering the new iPhone, iPhone 4.0 OS can run on older iPhones and iPod Touches, but some will have limited features.

The new iPhone features a higher resolution 960 x 640 screen with a retina display for sharper, more readable text, all in a 24% thinner package than the iPhone 3GS. Unlike the iPad, the new iPhone will fit in your pocket and reading books in iBooks or watching a movie will be more enjoyable.