With all the buzz surrounding iPhone OS 3.0, it's easy to forget the incredible potential of next-generation mobile hardware coming our way this summer. When it comes to the insides of Apple's iPhone 3.0, there are plenty of upgrades in the works.

One only has to look at the deals Apple has already made with its partners in the hardware manufacturing business to picture the next device. In one of the most dramatic and exciting developments, LG has made a multibillion dollar deal with Apple to supply the company with OLED displays.

With the initial excitement of Apple's iPhone 3.0 preview already passed, users of the iPhone OS 3.0 Beta have been finding several new features that appear to be in the works for a next generation device. One such feature is video recording, which reports have indicated would come along with an upgraded camera and possibly a multi-core GPU (graphics processing unit).

Backing up the claim are screenshots from the MobileMe upload screen in iPhone OS 3.0 that say "Publish Video" at the top of the app. Of course, a better camera would mean higher-resolution still photos, too. Other features that look interesting have also appeared in leaked screenshots of iPhone OS 3.0 Beta.

AT&T has confirmed it will start selling un-subsidized iPhone 3G hardware without a contract, only months before the release of iPhone 3.0. Both the 8GB and 16GB models will be available at full price, $599 and $699 respectively.

Pre-paid service will not be an option, as activation of no-contract phones will require an iPhone data plan, costing $30 monthly. Unfortunately for those interested in using the device with a different carrier, even the full price iPhone 3G hardware will still be locked to AT&T.

Apple held their widely anticipated iPhone OS 3.0 preview today in Cupertino, California. There are 100 new features on the way in the new operating system, which will ship this summer and cost nothing for existing iPhone users (iPod Touch users will pay $9.95 for the update).

Scott Forstall, the head of iPhone software development, described iPhone OS 3.0 as "a major update to the operating system." Here's a list of the features announced at the event: