Apple's iPhone software v2 is finally out of beta phase: the company released its iPhone 2.1 software version, which finally fixes most of the bugs introduced with version 2.0 and the new 3G hardware. The update fixes the huge security flaws which enabled access to most password locked iPhones, among other things, and eliminates most stability problems related to third-party applications. Also, Apple claims that their smartphone will finally work reliably as a phone, and calls will not be dropped as easily in 3G mode.

Also, the battery life, which decreased significantly for the 3G iPhone compared to its older brother, is improved. Furthermore, it will not take hours anymore to sync with iTunes, as it happened in the past. Email fetching finally works right.

So, expect things to go back to how they worked before the bugs introduced in version 2.0, plus the additional features brought about by v2 which now are actually working pretty well. No more failed calls and interrupted calls all the time, you can now use your Apple toy as a phone, too.

Ever since Apple’s product was released, buyers have been reporting problems with it, posting detailed information on Apple’s support forums, the biggest issue being the dropped calls one. Users stated that even in areas covered by the AT&T Inc.’s 3G network, their calls were frequently dropped. Consequently, so far, two lawsuits have been filed against the company for having deceived consumers.

Nevertheless, Steve Jobs strongly believes that 2.1 will fix all the aforementioned bugs.

The iPhone is not the only device in for an update, since today, Apple posted a 2.1 update for the iPod Touch gadget, which includes patches for seven vulnerabilities.