Over the weekend, the Apple web was abuzz after Engadget offered images of what appeared to be a possible next-generation iPhone that had reportedly been lost in a bar in the general vicinity of Apple’s headquarters. Further evidence of their authenticity then surfaced when it was noticed that a similar device appeared in a legitimate leaked iPad photo just before its January introduction.

And today, Gizmodo drops the biggest bombshell: They got their hands on the device and have examined it and torn it apart for all to see.

What’s new
- Front-facing video chat camera
- Improved regular back-camera (the lens is quite noticeably larger than the iPhone 3GS)
- Camera flash
- Micro-SIM instead of standard SIM (like the iPad)
- Improved display. It’s unclear if it’s the 960×460 display thrown around before — it certainly looks like it, with the “Connect to iTunes” screen displaying much higher resolution than on a 3GS.
- What looks to be a secondary mic for noise cancellation, at the top, next to the headphone jack
- Split buttons for volume
- Power, mute, and volume buttons are all metallic

Read full article here.

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