The iPhone 4G may be even cooler than previously reported. MacRumors has found that the new iPhone may be able to record in 720p. iPhone OS 4 comes with new APIs that give devs access to video data. The current SDK shows that the iPhone 4G will be able to take video at a higher resolution than the current 640x480 standard.
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One of the pre-set values found states that a resolution of 1280x720 will be possible. That is 720p, and acts as another feather in the cap of those who suggest the next iPhone will be named the iPhone HD.