Gizmodo has done an excellent job in unpacking the iPhone 4G and revealing its innards to the world although we have yet to know what are the exact hardware specifications of the device.
The screen resolution appears to be much higher with a slightly smaller screen diagonal, possibly 3.4-inch. We posit that the iPhone 4G will be the first smartphone capable of displaying HD-ready content which would mean that it would offer more than four times the pixel density of the iPhone 3GS.
The photos also show a front facing video camera and what appears to be a significantly improved back camera. We expect Apple to up the picture resolution significantly as rivals' entry level models now offer the 3GS' 3-megapixel mode by default.
Gizmodo also says that the lenses are larger than on the iPhone 3GS which augurs well for image quality as more light falls on the camera sensors. There's a camera flash - possibly LED based - as well.
Apple has also apparently chosen to use microSIM rather than normal SIM, possibly to reduce the impact of grey imports on its approved retailers. It also means that consumers should be able to swap SIM cards between the iPad and the iPhone.
Perhaps the most significant change inside the device though is the physically larger battery; it does provide 16 percent more juice is a feat and should solve one of the iPhone's biggest bug bear, poor battery life.
There are also a number of subtle changes like the fact that the size of internal components has been reduced and possibly fused or integrated. Gizmodo did not give an exact count of the parts but expect some surprises.
The engineers have also thrown in a secondary mic for noise cancellation, something that HTC Desire/Google Nexus One users already have. Add in the split buttons for volume and you have an altogether much improved audio experience.