In order to install the 3.0 update, you need at least iTunes 8.2 which was released in the same time period as the update, so it can support the new features brought by 3.0. While iPhone users get to update their devices for free, iPod Touch users have to pay $10 for the 3.0 update. The update was first announced at a special press conference in March and promised 100 new features. Some of these features were the cut,copy and paste functions which were long-awaited, horizontal keyboard for more applications than just the Safari mobile browser, and a Find My Phone feature for Apple's Mobile Me Service subscribers which helps them locate their lost phones.

Vice President at market research firm Interpret strategy and analysis sector, Michael Gartenberg said that "Apple has really refined the experience they first delivered two years ago to the point where everything is head and shoulders above anything else out there". Gartenberg thought that Apple, who was already leading the smartphone business with its iPhone offerings, could really solidify their position in mobile marketing by the release of the 3.0 update and the release of the iPhone 3GS (which was scheduled at very short time after the update).
The research director of consumer device at Current Analysis agreed with Michael Gartenberg's statements, but also added that although Apple's iPhone is well ahead of other smartphones when it comes to entertainment and multimedia, there are currently other smartphones on the market than over class it when it comes to some other features. For instance, RIM's BlackBerry line of smartphones is well-known for being centered on e-mail, and the Pre line of smartphones are known for being the best at multitasking and information management.

The most anticipated new feature in the 3.0 update remained the ability to cut, copy and paste, which was highly requested since the release of the original iPhone back in 2007. The user can select a text, and by performing a double tap, he makes a bubble appear, containing the three options(cut, copy and paste).After taping one of the three options, the user can go anywhere and perform another double tap to summon the same three option bubble and paste the content, even in a different application. The iPhone is able to perform copying, cutting and pasting with text, HTLM and photos.