Recently, at the World Wide Developer’s Conference in San Francisco, Apple took what turned out to be very leaky wraps off the second iteration of the iPhone: The iPhone 3G. The new version of the game-changing iPod/Internet tablet/cellphone now offers a built in GPS receiver, better reception, business-friendly upgrades, and the promise of more applications than you can shake a dead cow at.

But the real news is the price of the new device. Apple says that it will go fore a mere US$199 for the 8 GB model here in the U.S., and $299 for the 16 GB device. That price makes for some interesting consumer thinking.

iPhone 3G (Courtesy of Apple)

Hence, my current dilemma.

My daughter’s birhtday was looming and she was long overdue for an iPod upgrade. She still used her pink 4GB iPod mini. Until recently she has refused all offers for an upgrade saying that her mini works great, is built like a brick, and has sentimental value. She saw no reason to relegate it to a junk drawer and could never sell it or give it away.

Lately, however, her resolve showed signs of weakening. She’s sucker for anything related to The Sims, and EA Mobile has released several Sims-themed games for the iPod.

I saw this as an excellent oppportunity to get her a new pink iPod nano, and that, my friends, was the problem.

It was like this: An 8 GB iPod nano costs $199. It has a very nice, but awfully wee screen, a scroll wheel, and is the size of a box of breath mints. The iPod and nano both are nice devices with the ability to shows photos, calendars, and notes, play some basic games, videos, audiobooks, and, of course, music.

The problem is that soon -- and for the same price -- I can get an 8GB iPhone that will do all of that and sports four times the screen real estate, has a multi-touch display, includes a built-in phone, and all the other goodies I mentioned earlier.

iPod Family (Courtesy of Apple)

Which one should I have bought? I’m sure there are a few of you who share my predicament. Here’s my reasoning:

If I picked the iPod she I won’t have to worry about a monthly charge unless she buys music and movies regularly.

The iPhone, on the other hand, will set her me back another $30 a month over my current family voice plan. That, and whatever she consumes in movies, music, games, and whatever else those wilie developers can come up with will ultimately add to the bottom line. Cha-ching!

Am I comparing a Golden (oldie) Delicious to a Kendall (a new hybrid apple)? Is the iPod so completely different than the iPhone that comparing them is an exercise in silliness, or has the trusty iPod become second, maybe even third string in Apple’s device lineup and so not really worthy of consideration?

One has to wonder what Apple has in store for the device that literally re-ignited the music industry. The iPod touch may be, and should be, an indication of where they are headed; larger screens, different user interface, faster processors, and a continuation of the device-as-a-platform concept; an idea that has made the iPod, and is making the iPhone industry defining gadgets.

Still, what’s to become of the iPod is a secret tucked away in the hallways, offices, and minds of Cupertino and we won’t know until some as yet secret announce date. What will you decide today: iPod or iPhone?

Beyond the cost considerations I suppose it really boils down to usefulness. If you already have a phone that you like or you’re one of the unfortunate folks who are locked into contracts with non-iPhone carriers, but you really want to feel the synergistic goodness of the iTunes/iPod environment, then the iPod is a good match. All you need to do is decide which iPod (classic, nano, or touch) is right for you.

If you need a phone, want an iPod, and really could use some of the other applications available and soon-to-be available for the platform, then you really don’t have a decision to make. Get the iPhone.

As to my daughter, she wound up with both an iPod nano AND an iPhone as presents. I won’t say which one I gave her, but suffice it to say that I need to find 30 extra bucks a month somewhere.

So hey, can ya help a brotha out?

Vern Seward is a writer who currently lives in Orlando, FL. He’s been a Mac fan since Atari Computers folded, but has worked with computers of nearly every type for 20 years.