
The source claims that the iPhone’s physical designs won’t change but the device’s underlying Hardware will improve somewhat. A faster 600 MHz processor, up from the iPhone 3G’s 532 MHz CPU will be included, RAM will be doubled from 128 MB to 256 MB and the storage upped from 16 GB to 32 GB. In addition, an FM Transmitter, Magnetometerand improved 3.2 Megapixel camera will make it into the final Hardware. Source...
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