iPhone 3GS Ready To Play HD Video?

iLounge picked up a report that indicates that the iPhone 3GS is capable of playing back HD video in 720p and 1080p with its integrated video player.

Apple would limit the player for now, but could enable it to provide full HD video output via the Component AV cable for iPod and iPhone.

Playing HD video you rent from iTunes via the iPhone 3GS on your HDTV would be neat. We will see if this is really coming. If yes then the Apple TV would lose a lot of appeal.

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