11th
Both the original iPhone and the iPhone 3G are powered by an ARM 11 CPU running at about 412MHz, with a 32KB L1 cache. The graphics processor is a PowerVR MBX-Lite GPU, which is a rough equivalent of the NVIDIA Riva TNT2 series of video cards. Both of these are coupled, along with 128MB of DDR memory, on a single chip that is smaller than the Intel Atom line of processors.
By comparison, the iPhone 3G S is powered by the ARM Cortex A8 processor, the PowerVR SGX for graphics (which has a throughput of nearly seven times that of the MBX-Lite used in the previous models), and 256MB of DDR memory. This is the same core configuration that is used in the Palm Pre, for those who are comparing notes. Sure, it may not hold a candle to your desktop gaming rig, but it can definitely hold its own at portable and mobile computing.