Subsequent to T-Mobile Austria's unwitting slip up last week which seems to confirm ongoing storage speculation, a new iPhone with a 32GB capacity seems likely. Given the news that Apple will be discontinuing the 8GB model, the natural evolution would be to up the ante to both 16GB and 32GB flavours.
The iPhone's curent screen res is pretty decent, but an OLED screen would be the cherry on top of the iPhone cake. A bright and crisp screen, coupled with less power consumption and a wider viewing angle certainly would be a treat.
Improved 3.2MP camera
Since its birth, the paltry 2MP camera has been one of the iPhone's biggest failings, so fingers crosssed the new iteration comes with some 3.2MP (at least) improvements. There's also talk of a front-facing camera for video chat.
Improved RAM and faster performance
A faster processor would definitely give the iPhone a decent performance upgrade. And CPU uppage from 400Mhz to 600Mhz could be on the cards, giving the new iPhone a 1.5 performance increase from the 3G model. The RAM is expected to get an increase too, from 128GB to 256GB, which can only be A Good Thing.
Adobe Flash support
Apple was heavily criticised for omitting Flash support from the iPhone's Safari browser, meaning that some websites won't render properly and the iPhone can't play web movie clips. This could all be about to change if the new iPhone software update comes packing Adobe flash support.
Video recording and editing capabilities
The demand for video capabilities on the iPhone is huge. Hopefully Apple has finally succumbed to these demands by packing the ability to record as well as edit video in an on-board iMovie app. Major sources point to video being a major feature on the third-gen phone, as well as direct uploading to YouTube.
HD video playback and output
It's been rumoured the third-gen iPhone will come with an AV cable to support HD video playback, allowing users to stream content to an HDTV screen, via the cable or wireless home network in both 720p and 1080i. The rumours of a higher screen res on the iPhone itself means that 720p HD video playback could be possible too.
WiFi Movie/TV downloads
According to some, direct downloads of movies and TV content via WiFi from the iTunes store is on the way. This has been sparked by in-app advertisements for iTunes Movies, iTunes Movie rentals and iTunes TV, so we could be looking at a new iTunes store interface too. Adding credence to the rumour is the fact the iPhone iTunes video section is currently under construction.
Transfer media during calls
An Apple patent has appeared on the web that suggests the new iPhone update will come with the ability to share songs and other media files to other iPhone owners mid-call, so no need to attach or email.
Digital compass and app
A screen shot spotted on the web a while back hinted that a digital compass was iPhone-bound this year. This could potentially mean using Google Maps and Street View in compass mode like the G1, overlaid graphics and text on Google Maps, turn-by-turn navigation and loads more augmented-reality type apps.
Which ones will come true? Which ones are as likely as a unicorn riding to Atlantis? Have your say below. Or in the meantime, check out our hottest WWDC rumours...