That’s really a question with many things to consider, like if the price is right, how far you're into your telco contract and if you fancy the new features. But fear not, like many things in life, a little history and tech perspective will shed answers for you.
iPhone to iPhone 4
The first iPhone was introduced in 2007, and can be considered 'discontinued' now that you can't upgrade to the latest iOS (version 4) and beyond. We therefore infer that each generation of iPhone has a shelf life of 3 years, give or take. An easy answer for first generation iPhone users: upgrade!
iPhone 3G to iPhone 4
Apple released the iPhone 3G in 2008 and it's now two years old. We guess it'll have a usable life of a year more, which by then it'll probably be left out by iOS 5. In fact, upgrading the iPhone 3G to iOS 4 already excludes some of the key features iPhone 3GS users enjoy like multi-tasking. To further exaggerate the case, iOS 4 also seems to make the 3G noticeably slower - no surprise really as the iPhone 3G didn't give much of a performance boost over the original. Conclusion: Upgrade!
iPhone 3GS to iPhone 4
The more powerful iPhone 3GS came out in 2009, giving it a couple of years more of shelf-life. It's still a capable workhorse, getting the full features of iOS 4. Should you upgrade? Assuming your contract is for two years, that means you probably still have at least a year left on it, so if you break it now you could be looking at an extra penalty.
Yes, the iPhone 4 has a faster processor than the 3GS, but it should still prove capable running the newest apps without giving up the ghost.
We say there's no need to upgrade from an iPhone 3GS unless you really love the new iPhone 4, its speed gains and features (trust us, when iPhone 6 comes out two years later, it'll be even more luscious than the iPhone 4). Conclusion: Upgrade only if you have the cash to burn.
Should you upgrade to IOS 4?
Not convinced you should buy a new iPhone every time one rolls around? Say you don't want to get a new iPhone 4 and want to keep your older model - how should you get the most bang for your buck out of it? Well, here's some advice: Depending on which set you own, you might not want to upgrade to the latest iOS 4.
iPhone 3GS
We say upgrade! iPhone 3GS users get the perks enjoyed by iPhone 4 users with none of the speed hits seen by iPhone 3G users. You get multitasking, folders, a better email app, orientation lock and so on.
There is one gripe though: multi-tasking seems to drain the iPhone's battery faster and the multi-tasking panel on iOS 4 makes it a hassle to kill multiple apps running at once.Now, about the latest 4.0.1 upgrade. It was supposed to change the signal indicator bars to reflect a more accurate measurement of signal strength. But it seems to cause bugs in the iPhone's photo albums, with some thumbnails showing up as black blocks. iPhone 3GS owners have reported success at eliminating the black blocks by simply rebooting, but 3G owners don't seem so lucky.
701Verdict: 5 out of 5
iPhone 3G
The cons may outweigh the pros if you're carrying an iPhone 3G. iPhone 3G users don't get the key feature of iOS 4: multi-tasking. This is supposedly because the iPhone 3G's processing power isn't up to handling multiple apps running at the same time. Another visible exclusion is background wallpaper, iPhone 3G users can't customize their backgrounds the way other iOS 4 users can.
The biggest gripe of iPhone 3G users though is the noticeable speed hit when running iOS 4. The rumor mill is that iOS 4.1 fixes the speed problem but we'll just have to wait and see. The only real pro to upgrading an iPhone 3G to iOS 4 seems to be the inclusion of folders, so you can tidily organize your apps together.
We say if your iPhone 3G with iOS 3 is serving you well, you don't see the need for folders and you don't need to have the latest in everything iOS - then you can comfortably hold off upgrading to iOS 4 and have a snappier phone.
Source : http://tech.701panduan.com/article-details.php?title=&sec=1&id=569
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