Apple iPhone 4G has the sufficient hardware required for HD recording. The evidence of the HD recording was found in the code of iPhone OS 4.0 beta. After digging up the code, some fellows got this following video presets in the code:
This makes the picture clear and confirms that the future iPhone will be recording HD videos. The likely candidate for the HD recording is the iPhone 4G because of the top notch hardware.
Whatever doubts are present in the mind of people regarding this, will be cleared on 7 June, when the next iPhone will be announced in San Francisco, CA.
(News Source & Image Source Gizmodo.com)