I was trying to watch a movie trailer the other night (on the tiny 3.5" screen mind you) and was surprised that the quality was AWFUL. The sound was awful the video was awful, everything was awful.
I have not experienced this, but if you upload a youtube video from your phone, it reduces the quality as well? What is up with that Apple?
For comparison sake, on Android phones you can toggle HD at any time. The sound quality and video quality is significantly improved. It automatically is HD whenever you are connected to WIFI or 4G, and if your on a 3G connection you can toggle it on (but i wouldn't recommend it)
I'm getting the general idea that Apple is leaving out features ON PURPOSE! Perhaps this is so they can "re-invent" them later and be "industry leading", and make "everything old new again" when they release their youtube app with HD for example. This keeps gets them free advertising in the media. The average iPhone buyer will not know how many features are left out of this phone until they have taken it home to show their friends.
I am wondering how much of this is influenced by the carrier. It seems like I remember different circumstances where AT&T did not allow Apps to run video over 3g
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