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Apple are aiming to make the next-gen iPhone into the cellular version of the Pure Digital Flip, according to BusinessWeek, with simple point-and-shoot capture and a one-stop on-device editing studio.  According to sources familiar with the upcoming third-generation iPhone, Apple have developed a mobile version of iMovie that allows for speedy editing.

“Evidently, shooting video is as easy as it is with a Flip, the ingenious device made by Pure Digital (recently purchased by Cisco). Then there’s an iMovie app that lets you quickly save the sections you want, right there on the phone itself. There may also be support for MMS, so the clips can be shared wirelessly with friends. And because of the iPhone’s relatively large screen, your friends don’t have to schlep to your PC or their Facebook page to see that video of your kids or your safari. Just hand them your iPhone” Peter Burrows, BusinessWeek

From iMovie Mobile, the clips can then be sent via MMS or viewed on the iPhone’s own, large display.  It also seems likely that the smartphone will allow uploading to video sharing sites, such as YouTube, or possibly an Apple version integrated with the Mobile Me service. 

Alternatively, the files could sit on the iPhone until it’s next synchronized with iTunes, at which point the new clips would be transferred over, automatically uploaded or left for further editing.  Apple themselves have not confirmed video editing on the next-gen device, but signs that it will be included have been found in the iPhone OS 3.0 firmware. 

[via MacRumors]