As we all know there are two versions of the Apple iPhone and Apple iPhone 3G, the 8GB and 16GB, and maybe 16GB is enough storage for most. However, physical storage limit requires the user to choose which media is transferred to their iPhone and transferring 16GB of stuff can be time consuming.
Therefore, the word is Apple is looking at bringing infinite storage capacity to their iPhone and iPhone 3G mobile phones, a move which would allow heavy media users to store all their media direct on their iPhone, and without the need to pick and choose between media.
If you are thinking flash technology or mini hard drives you would be wrong, infinite storage means a fundamental change in the way Apple manages media storage. And a recent patent application has popped up that detail this technology. Technology that sees iPhone and iPhone 3G streaming media in real time from desktop iTunes libraries.
All this means “lightweight” metadata could increase the Apple iPhone’s storage capacity one hundred-fold.
Source — appleinsider