A Birmingham, Ala., woman who bought Apple's iPhone 3G this summer is suing the computer maker, alleging that Apple falsely claims the phone's Internet connection is twice as fast as the original iPhone.

Jessica Alena Smith's lawsuit is the strongest step yet taken by those who believe the phone has problems accessing third generation cell phone networks, which deliver webpages over-the-air at speeds comparable to a wired broadband connection.

Compatibility with so-called "3G" networks was a major addition to the iPhone 3G, which went on sale July 11. The original iPhone couldn't use 3G networks.

Apple has taken steps to address the access issues, which may be the result of a faulty chipset inside the phone. Earlier this week, Apple distributed new iPhone 3G software meant to "improve communications" between the phone and these faster wireless networks, Apple spokeswoman Jennifer Bowcock said Thursday.

"We are always working to improve our products for our customers," she added. She didn't have an immediate comment on the Smith's suit, which was filed Tuesday in the U.S. District Court for northern Alabama.

Smith's suit accuses Apple of breach of express warranty and unjust enrichment. She is also seeking an unspecified amount of damages, a judge's order that Apple fix the problems, and that the suit be certified as class action.

"You could barely turn on the television" this summer without encountering the "twice as fast for half the price" slogan Apple used to market the new iPhone, Smith's suit alleges. Aside from having a zippier Internet connection, the iPhone 3G also costs $199 with a service contract, which is half the price of the original.

After buying the iPhone at the Birmingham Apple store, Smith alleges the phone "immediately" had problems receiving and sending emails, text messages and performing other kinds of data transfers. She also estimates the iPhone 3G was able to connect to AT&T's third generation cell phone network only 25% of the time. Also, the suit cites "an inordinate" amount of dropped calls.

Apple shares recently traded down 1.8% to $172.68.

Source:Dow Jones