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Photos of what looks like the next iPhone running OS 3.0 have surfaced on a Chinese blog. The photos show how recording video and auto-focusing will work within the camera app. Auto-focus works by focusing on a point in the image, shown by a blue outline which can be moved by tapping anywhere on the screen. If the photos are legitimate, then the autofocusing capabilities will be pretty incredible and should have a very noticeable difference, as you can see.

Boy Genius Report has received screenshots which show a "Compass" option in one of the iPhone's debugging menus. It's not clear whether it was found in the recently released iPhone 3.0 Beta 5 or in some other location. Regardless, their source concurs that the option is obviously referring to a digital compass which is undoubtedly going to be included in the next iPhone.

Rumors that a digital compass in the next iPhone have been floating around for some time. The inclusion of such a sensor would offer quite a few benefits to applications such as (very accurate) turn-by-turn directions to Google Maps. Screenshots follow below!

Our friends over at MacRumors have received some very convincing evidence that video recording will be a feature in the next iPhone. A screenshot of the latest iPhone beta shows what appears to be the interface for recording video on an iPhone. It's similar to the current Camera app with the addition of a toggle for video recording. The screen is only visible when a certain configuration file is altered to say that a video camera is present.