Funny story - An Apple engineer lost the new iPhone 4G prototype and it has ended up in the hands of the online gadget blog - Gizmodo!
From what Giz could tell from dissecting the phone, the improvements from the 3GS include a larger battery, front-facing camera, separate volume buttons, microsim, flat back, larger camera, camera flash, and an extra microphone most likely for noise cancelling. The software couldn't be tested because Apple was smart enough to shut the iPhone down remotely as soon as they found out it was lost.
Full coverage on Gizmodo.
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