Engadget - As you can see in the pic above, the left side of the new device is clearly visible on this table in the upper right hand corner, and since we believe that these photos come directly from an Apple testbed, it's hard to deny that the phone you've just seen is in fact the real deal. Not only that, but we suspect that the device on the tablet itself is also a version of the new phone (you can see what looks like aluminum along the bottom) which seems to be housed in some type of iPhone 3G-like case.
Additionally, a source -- who confirms this is the next Apple iPhone -- also tells us that the device apparently does have a higher res screen on-board, a front-facing camera, a higher resolution camera with flash, and takes MicroSIM cards (that's the little "button" around the side you see in the Twitpic which is floating around the internet).
Not really sure what I'm looking at in the pic above, but Engadget has yet another update to this ongoing saga. Looks like there's further evidence that supports the rumor of a front facing camera for the mobile iChat app.
(pics of rumored iPhone guts after the jump)
Here are pics from MacRumors forum of the internal parts of the rumored iPhone.
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