Next-generation iPhones likely to focus on internal improvements.
Next iPhone to Easily Record, Edit and Share Movies?
In fact, Burrows suggests that video recording won't simply be an afterthought but a major feature of the new iPhone.
Evidently, shooting video is as easy as it is with a Flip, the ingenious device made by Pure Digital (recently purchased by Cisco). Then there's an iMovie app that lets you quickly save the sections you want, right there on the phone itself. There may also be support for MMS, so the clips can be shared wirelessly with friends. And because of the iPhone's relatively large screen, your friends dont have to schlep to your PC or their Facebook page to see that video of your kids or your safari. Just hand them your iPhone.Burrows even suggests it could be as successful as Apple's late, yet dominating, entry into the MP3 market with the iPod. An easy to use video recording, editing and sharing iPhone could be a breakthrough usage for the device -- allowing people on a large scale to quickly record and share videos without bothering to connect to their computer.
For what it's worth, MacRumors has similarly heard that the next iPhone will support Video recording and YouTube sharing which has been supported by evidence found in the iPhone 3.0 beta.