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Video chat on the iPhone? The on-again, off-again rumor that Apple's latest incarnation of iPhones is going to support two-way video conferencing has been the talk of the Web town as of late.

PCMag's own Sascha Segan doesn't foresee this happening: "Apple is very picky about its multimedia experiences, and video chat with mobile devices over cellular networks doesn't work well," he writes. "At CTIA, the CEO of Skype said the problems are network-centric as much as device-centric. Apple would rather leave a feature out than deliver a subpar experience."

However, a new image straight from an Apple source who's field-testing the iPhone 4.0 firmware highlights a new "Video Calls Debugging" section in the phone's Settings. The site Boy Genius Report, which received the images to begin with, believes that this is a sure-fire sign that video chat will be a part of the next iPhone OS—and, consequently, the rumored new iPhone device itself.
If so, writes Electronista, than the iPhone will be one of the only two phones in the U.S. market that will actually support two-way video chat come summertime. The other device, Sprint's HTC Evo 4G (to be released on June 4), needs to use its 4G or Wi-Fi connection in order for the video conferencing to work.

It's unknown at this point whether the iPhone will fall under the same Wi-Fi restrictions for video or whether the device will actually be able to send and receive realtime transmissions via its 3G connection. As well, there's no indication as of yet that the rumored video chat features would only be for the equally rumored release of a next-generation iPhone in June. What about other iPhone devices running the 4.0 OS?

VIA PCMag

Looks like Apple as seen that the demand for their products are in high demand. After the release of iPad we saw some incredible numbers of units shipped.
Apple doesnt want the new iPhone to sell out and become backordered. Surely they loss buyers when they here they have to wait as those users would go to eBay.

Apple's contract manufacturer building the next iPhone plans to ship 24 million units by the end of this year, according to a new report.

The report from Digitimes on May 17, 2010 said Taiwan-based Foxconn will ship 4.5 million next-gen iPhones by the end of June, and 19.5 million by the end of 2010.
Apple sells a lot of phones, but 24 million is a big number even for them. For comparison, Apple has sold a little over 50 million total since the original iPhone's debut in 2007. So how to explain the supposed sudden surge in iPhone supply? Digitimes could be wrong of course, though it does have some good sources in the contract manufacturing world.

Other possible explanations could be that Apple is planning big price cuts on this model, which could move more units. Or, and this would jibe with reports that the company's building a CDMA phone, it could be planning to add more carrier partners. More outlets to sell the phone would mean more supply.

Digitimes, an IT trade publication, had some other details too: The next iPhone will have an ARM Cortex A8 processor and 512MB of memory, which is double what's currently available on the iPhone 3GS.

The next iPhone will have an in-plane switching (IPS) panel like the iPad, according to Digitimes, and a 960x640 resolution. There will also be new technology that allows a wider viewing angle and better viewing in sunlight, according to the report. Apparently, Apple wants to improve the iPhone's utility as an e-reader and will be promoting iBooks on the iPhone. The panel is also reportedly 33 percent thinner to make more room for a larger battery.

Source CNet.

San Mateo County prosecutors are defending the search of a Gizmodo editor's home and seizure of his computers that are part of a criminal investigation into an iPhone prototype lost by an Apple employee.

Stephen Wagstaffe, chief deputy district attorney, told CNET on Tuesday evening that prosecutors had considered whether reporter shield laws applied to the search and seizure aimed at the gadget blog--and decided to proceed after carefully reviewing the rules.

"My prosecutor who is handling it considered this issue right off the bat when it was being brought into him and had some good reasons why he and the judge felt the warrant was properly issued," Wagstaffe said.

Gizmodo's parent company, Gawker Media, has said that the search warrant is "invalid," citing a California law curbing newsroom searches. So has the Electronic Frontier Foundation. However, if Gizmodo employees are targets of the criminal investigation themselves, it's likely that the law's protections do not apply.

Wagstaffe said that if police had delayed, evidence could have been lost. "I think the people who are saying, 'No, we should have waited' and did it the other way first don't understand that in the world when you're investigating crimes, evidence sometimes gets deleted and destroyed," he said. "If you sit there and work by the Marquess of Queensberry rules, then bad guys win."

Investigators with the San Mateo County Sheriff's office searched the Fremont, Calif., home of Jason Chen last Friday evening. CNET was the first to report, a few hours earlier, that Apple had contacted police and a criminal investigation was under way. Among the items seized were three Apple laptops, a Seagate 500 GB external hard drive, USB flash drives, and an HP MediaSmart server.

Wagstaffe confirmed that law enforcement has identified the person who allegedly found the iPhone in a bar and then began shopping it around to news organizations, including Gizmodo, Wired.com, and Engadget. Gizmodo has acknowledge buying it for $5,000 and then returning it to Apple.

"Initially it's just a theft investigation," Wagstaffe said. "But ultimately could it lead to more? That's going to depend on what they learn. That's why they would like to be able to look at the computer and interview everybody that they can so they can determine the extent of what's involved." (Prosecutors have voluntarily agreed not to search Chen's computers while discussing the matter with Gizmodo's lawyer.)

Disclosure of the search warrant has had a polarizing effect in legal and technological circles, with responses ranging from incredulity that police would pursue this case to astonishment that bloggers believed it was acceptable to buy almost-stolen property.

"If you're investigating a crime and you want information from a journalist's news-gathering materials, that is one thing you can do and one thing only, and that's serve a subpoena," said Lucy Dalglish, executive director of the Reporters Committee for Freedom of the Press. "And then when you serve a subpoena, the journalist has the ability to go court and fight it."

An attorney for Gawker Media told CNET on Tuesday that if Gizmodo had been contacted before the search, it would have offered a formal written agreement not to delete any data.
Source:cNet