These preset values suggest that a future iPhone will be able to capture at 720p (1280×720) resolution:

AVCaptureSessionPreset640x480
AVCaptureSessionPreset1280x720

The next iPhone has been pegged to use a 5 Megapixel camera, though the video capabilities of the hardware are unknown. The next iPhone revision has been also rumored to be dubbed the “iPhone HD” which would fit well with this new 720p video recording capability.

Apple is expected to introduce the new iPhone at the Worldwide Developer’s Conference which takes place between June 7-11th in San Francisco, CA.

The iPhone will be developed in two different hardware versions, as no chip can provide a dual-operation to work on both GSM and CDMA towers.  With another hardware version launching, this means that Verizon will in fact be getting the next generation iPhone, the iPhone HD.  However, the manufacturer said it will start producing these in September.  Customers may have to wait till holiday season to get a Verizon iPhone HD.

Besides, Daring Fireball builds on the WSJ iPhone 4 rumors earlier today by dumping what they know: An almost iPad-level 940 x 640 resolution display, an iPad-esque A4 CPU and a front facing camera. AND, multitasking in iPhone OS 4.

The front camera and multitasking have both been suggested before. There has been overwhelming evidence that Apple has been working on video chat for the iPhone OS. Meanwhile, multitasking was believed to have been originally planned for iPhone 3.x but later scrapped. The 960×640 display is completely new information, though would make sense given the increasingly high resolution screens of the competition.