A sharp-eyed editor at Engadget is positive that they have found proof that an iPhone 4G exists. It's turns out that it's pictured along with photos of what appear to be an iPad in an Apple test lab.
Engadget's source says that the new iPhone is in fact in development and comes equipped with a higher resolution screen, a higher res camera with a flash, a front-facing camera and takes MicroSIM cards.
Have a look and judge for yourself.
(All photos from Engadget)