* OS Enhancements
o Certificates and Identities
o WPA2/802.1X
o Ability to turn Wi-Fi back on while in Airplane mode
o Cisco IPsec VPN support
o Ability to take screen-capture by holding the Sleep/Wake button and pressing Home
o Ability to save pics from Safari or Mail to Photos[9]
o Bonjour service discovery protocol
o Support for SVG
o Parental controls
o App Store (to manage third-party applications) with home screen icon
o Password letters are momentarily visible while typing
o Ability to turn Location Services on or off
o Applications that use Location Services prompt user for confirmation 3 times.
o Tapping the title bar scrolls to the top in most apps
* Language Support
o Norwegian, Swedish, Danish, Finnish, Polish, Dutch, Korean, and Brazilian Portuguese language interface in iPhone, previously these languages were only in the iPod Touch since 1.1.1[10]
o Extra keyboard languages including Chinese and Korean and Russian
o Support for Traditional and Simplified Chinese handwriting recognition
* Mail/Contacts/Calendars
o settings grouped
o Microsoft Exchange ActiveSync support
o Support for Apple's new MobileMe service
o Mail
+ Push e-mail
+ Ability to select an outgoing email account within Mail appliction[11]
+ Support for BCC in Mail application
+ Multiple email delete/move
+ Ability to view MS Office attachments
+ Ability to view iWork attachments, including Pages, Numbers, and Keynote[12]
o Contacts
+ Contacts icon on "Home" screen (iPhone only, it was previously on the iPod Touch)
+ Ability to search contacts
+ Global Address List
+ Push contacts
+ Ability to import SIM contacts
o Calendar
+ Multiple calendars supported in Calendar with color coding (desktop colors only preserved if using Mobile Me)
+ New "Calendar" menu in "Settings"[13]
+ Push calendar
* Enterprise enhancements
o Enforced security policies
o Device configuration
o Remote wipe
* iPod
o Video can be shown in either landscape orientation (instead of just landscape left)
o Videos in playlists & music videos can be shown in portrait or landscape orientation
o Sound fade-out when exiting a video
* Other Apps
o Updated calculator with extra features in portrait mode, a scientific calculator in landscape mode and an updated icon.
o Updated iTunes with a new icon and reordered category icons within iTunes application.
o Camera now supports Geotagging[14]
o YouTube plugin for Safari[15]