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According to a “trusted” source from within Engadget, the new 3G iPhone will be roughly the same size as the current iPhone, but perhaps slightly thicker.

Instead of having a recessed headphone jack that only supports certain headphones, the new iPhone is rumored to ship with a flush headphone jack allowing for universal headphone compatibility.

Additionally this “source” also said that the chrome backing/siding to the iPhone will be replaced by a glossy black plastic, greatly altering the physical appearance of the iPhone (chrome volume buttons).

Finally, this source also mentioned that the 3G will feature true GPS! This means no more WIFI triangulation, you will be able to track your position throughout the world via satellite!

As you all probably know already, the 2nd generation iPhone will include 3G, this means updated EDGE speed, this allows us to get faster internet anywhere in the world, WIFI or not!

One feature that will have probably not have changed with the release of the 3G, is the user’s ability to remove the battery, it will still be securely locked within the iPhone. There is still no news yet in terms of extended/reduced battery life for the new iPhone.

None of these “rumors” have been confirmed by Apple Inc. yet, this means that none of the features mentioned above have been officially unveiled, and are purely speculation/unconfirmed reports.

The new iPhone is rumored to begin shipping and hitting store shelves as soon as July 2008, none of the above mentioned features have been finalized and are prone to modification or removal.

[via Engadget]

Image courtesy of The Daily Mac (Note, this picture is not a confirmed picture of a 3G iPhone)