Engadget is adding strength to the rumours that the next gen iPhone will feature 3G (well duuu), built in GPS, a flush headphone socket (hurrah!) and will only be slightly thicker. Read on for their full list of new features...

• The first thing people will notice: the 2nd gen iPhone will be about the same size and shape as the first gen.
• It will, of course, have 3G. And proper GPS!
• The most noticeable physical difference is back of the phone is no longer metal -- the whole thing is glossy black, from top to bottom. The volume buttons are now chrome.
• Because it's got a little less metal to deal with, it doesn't have quite as many angular edges. The battery is (still) not removable.
• The phone itself will be slightly thicker than the first gen device.
• The headphone jack will no longer be recessed, and will finally be flush with the body.
• The device itself uses roughly the same size and resolution screen as the first generation product.
• No solid word on battery life or storage capacity.

[Source: www.engadget.com]