This allegedly leaked image shows Apple's A5 processor—the brains of the iPad 2—firmly inserted into the next-generation iPhone electronic guts. While we suspected this was going to be the case, this would be the first visual confirmation.
If it's a photo of the real thing, that is. You can also see a new higher-capacity battery pack next to it, which could mean a sightly longer battery life.
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Update: MacPost has posted a new photo that shows the other side, revealing a simple iPhone 4 face. This may be the rumored iPhone 4S, basically the iPhone 4 with a faster chip and updated guts. [MacPost and Weibo via Phonearena via MacRumors]