Skype for the iPhone has put out its latest update, and this one competes with Facetime. The new update allows iPhone to iPhone video calling, as well as iPhone to Desktop video calling. Not only that, but you have the ability to use 3G OR WiFi. This is a quite a push from Skype to show they are still in the game. They have the upper hand at the moment because you can't use Facetime over WiFi. That is, as long as you don't jailbreak. Anyway, from some footage I saw of people testing it, there was a common trend of Skype managing the video transmission better. By no means will a person using a desktop computer see the call from the phone crystal clear because Skype manages bandwidth by degrading the picture a little. However, the person on the phone will see much better because it is coming from a desktop computer. Facetime however, is more grainy, and videos that I watched showed Facetime constantly adjusting the quality. In my opinion, unless Apple is able to let Facetime users use WiFi out of the box, and improve the quality, may people will switch to the Skype application. It will be interesting to see if Google jumps on the video calling wagon in the future.
~Dave
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