The speculation over the next generation iPhone continues to surface and one such speculation was that the next generation iPhone would sport a 5 megapixel camera along with video chat capability which has led to some calling the handset the iPhone HD.

Well iPhone HD may be right as according to an article over on engagdet by way of macrumors the iPhone OS 4 SDK includes a little thing called “AVCaptureSessionPreset128ox720,” which some believe means that the next Apple iPhone will record 720p video, and thus the handset will be called the iPhone HD.

However technically, according to the article the current iPhone 3GS is capable of the feat so this just might not have anything to do with the next generation iPhone, but if Apple wants to remain competitive they need to deliver 720p video recording.

Still the rumours unveil date of June the 7th at WWDC 2010 isn’t that far away so we should find out soon enough if said unveil date is factual.