Okay, sorry guys - new data made me change my mind. iPhone coming out in June is very likely based on the same SoC as the iPod Touch 2G (different one as the iPhone 3G though, remember! just look at the firmware hacking websites...) - but I also suspect the Touch 2G SoC already supports video encoding, FWIW. The only possible changes would be in terms of connectivity chips, baseband, and the camera. Royalty revenue for IMG should be similar.
DigiTimes
is hinting at the existence of a higher-end model later this year with a 5MP camera, which I presume to be the one with SGX/VXD. I suspect the 3.2MP sensor they are talking about is
http://www.ovt.com/uploads/parts/OV3640_PB(1.01)_web.pdf and the 5MP one is
http://www.ovt.com/uploads/parts/OV5642_PB(1.0)_web.pdf - it's worth noting both of those have integrated ISPs...
One thing that disturbs me is that a phone shipping in July 2009 won't be able to use Infineon's 65nm baseband. So either they're sticking to the exact same baseband as in the iPhone 3G (and still won't support HSUPA because of the RF chip) or they're changing supplier. InterDigital is out of the running, so the only real options I can see for a moderately slim baseband are ST-Ericsson, Qualcomm, and Icera. I can't see them switching to Qualcomm, and I'd be (positively, mind you!) surprised by Icera. So I can only see ST-Ericsson left, which would be intriguing but I'm still slightly skeptical; sticking to the old-gen Infineon solution seems more likely to me.
As for WiFi, CSR's 65nm chip wouldn't be ready either (would be for the high-end model later though) so I can only see the same Broadcom solution as in the iPod Touch 2G again. Alternatively, maybe Marvell's new 150Mbps 802.11n chip for embedded - certainly would explain the "faster internetz!!!" rumours
EDIT: I also obviously apologize for how many times I've had to change my predictions - I think everyone will agree Apple isn't the easiest company to track though...