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Live video iChat on the iPhone may be something we would expect from Apple, but is the timing and technology ripe for this functionality to come out this summer? Some reports are reading into AT&T network upgrades to 7.2 Mbps as a sign that they are bracing for more bandwidth demands from their iPhone subscriber base, and that one of those demands could be live video chat.

The longer AT&T can deliver what Apple needs for its hardware, the longer the company stands to profit from an exclusive arrangement to offer the iPhone on its network. Other leaks and data that point in the direction of a front facing camera on the next generation iPhone have also surfaced.

Could a healthy smartphone rivalry turn into all-out legal war between Palm and Apple? The Palm Pre has been found to sync effortlessly with Apple's flagship software iTunes by tricking the software into thinking it's an iPod.

The Pre is due for release on June 6th, and Apple is widely expected to release the next generation of its iPhone later this summer. Apple watchers are waiting to see what response, if any, the company will make to the revelation concerning the Pre's iTunes syncing capabilities.

Check out this photo of the black iPhone 3G next to what is purported to be the next generation iPhone. The matte finish on the new device to the left is clearly visible, although the model number is not.

Previous leaked photos of the matte iPhone 3.0 have indicated the model number A1303. The older photos looked like metal may have been used for the back casing, however recent tips have pointed to the possibility of a matte plastic back.

Incredibly, the Apple iPhone has blown away the competition in mobile web requests coming through the AdMob network. While the iPhone OS represents roughly eight percent of global smartphones, it drove a whopping 43 percent of worldwide mobile web traffic.

According to AdMob's latest Mobile Metrics Report, the iPhone OS share of US smartphone traffic in April was an incredible 59 percent. AdMob specializes in delivering advertisements to mobile websites and applications.

Next generation iPhone parts have already hit the web. Online wholesaler China Ontrade has a menu item labeled iPhone 4G Spare Parts, and claims to have stocked two parts from the not-yet-released third generation iPhone.

One of the parts is the bezel frame, and the other an LCD screen. The bezel frame sports a different shape and color than the iPhone 3G bezel, and runs $79.27. Anyone following rumors lately might have expected an OLED screen on the new iPhone.