Longer Battery Life, redsigned 8 megapixel camera and has an A5 (Same chip in the Ipad2) chip that makes it 7x faster than the iPhone 4.
Iphone 4S Black and white versions 16GB: $199, 32GB for $299, 64GB for $399. Pre-orders Start 10/7
Iphone 3gs is now free with a new contract and the Iphone 4 is now $99