If in fact these rumors are true, we would likely see a Movie Editing App for the iPhone, with trimming like capabilities like the current voice memo app. And with AT&T boosting 3G speeds, could we see video files being transferred over the 3G network? Only time will tell.
Details are few and far between, but the information comes from a person who's proven extremely reliable when predicting changes to the Cupertino-based company's hardware offerings.
At this time, there's no information to suggest that video recording support will be available through anything other than a upgraded rear-facing camera that will, of course, also take still photos at a higher resolution.
The addition, however, is reportedly just one of several hardware related tweaks that will surface in iPhone revisions due sometime between late spring and early fall. Another, that same person says, will be a significant boost to gaming hardware (likely via Imagination's new multi-core PowerVR chips).
Video recording support has stood as one of the most glaring omissions from the iPhone since its inception two years ago, but the understanding is that Apple wants to get the feature "right."