Good points in the comments about network support (recent white paper from Cisco talked about the impact on the network) but the industry also has to address the handset processing power required for editing video in the phone. This is not trivial and is not feasible with today's embedded mobile processors. Movidia is working to provide cellphone OEMs with mobile video processors that are capabile of video editing in the phone and within the available power budgets. The opportunity exists for Apple and other cellphone OEMs to bring high quality user generated video editing capabilities to the "YouTube" generation.

This would be a very cool gadget for the company.  Many people will be waiting for the launching of these new Apple innovation.  Well, despite of so many competitors out there, hope they can still make it.

Apple camcorder… hmmm… as usual they would be last since every major handset manufacturer has video recording capability - Nokia with VGA resolution at 25 fps and in 2010 HD. Same for samsung. Share as an MMS would be nice - even for stills. Again - something every other handset has. So IF Apple has video recording on the horizon let's try to contain the enthusiams. The UI will be brilliant I'm sure but get a grip. And the previous post about ATT's bandwidth is on the money. But as for video calling - that has never picked up anywhere on the planet. We humans have 100 years or so of speaking voice only etched into our dna. A video call means you need to be engaged, polite, present, and not type emails on your keyboard, wave to office colleagues, make faces, pick your nose, roll your eyes… you get it.

"BusinessWeek suggests the silence is telling." With all due respect, what a crock. Apple is ALWAYS silent about its upcoming releases…those who say they know - are full of it…

My jailbroken iPhone has been recording video for a while. Look for Cycorder by the way it records great videos.

Flip Video was recently purchased by Cisco, a massive internet infrastructure company.  Stands to reason that they're thinking along the lines of marrying cutting edge network infrastructure with ubiquitous video recording.  Apple may have to play catch-up.

I like the idea of Apple launching a device, any device, on Verizon.  Verizon's EVDO network is the best match right now for any high speed data product.

WiMax might be the next.

The question isn't if Apple is working on anything.  Everything is being considered and prioritized—video is not a high priority.  ATT needs some time to figure out its network load issues and Apple will need to find an elegant solution to the current network limitations. 

10M+ iPhones with robust video capabilities will take ATT down.  It's already happening at concerts and sporting events - - and that's bursty data—no video.  During MLB games local cellsites are jammed.  Coachella, out.  SXSW, out.  This didn't happen before the iPhone.

If Apple wants to grow its market-share at the current clip it has to find another spectrum owner.

Could the iPhone Camcorder be quad-band, dual-mode both CDMA and GSM like the Samsung Saga and Renown?  And will it be unlocked with Best Buy doing the launch like its record-setting results for the Samsung Instinct on Sprint?  It could be the ultimate shelf test for summer shopping in mobile electronics - the Palm Pre on Sprint versus an Apple iPhone Camcorder on the customer's choice of AT&T, Verizon or Sprint.  Could Synchronoss be the self-activation software to a mobile operator?  And will the activation be through iTunes to ensure that Best Buy does not use its recent acquisition of Napster?  And will Apple expand the relationship with Best Buy to open its Best Buy Europe electronics store in the UK to expand from the 50% ownership of Carphone Warehouse?

iPhone sync with iLife would bring heigtened visual and sensual capabilities to movie making using the mobile phone

Could be very cool. A competitor for Flip Video. The video quality wouldn't have to be fantastic. The benefit would be instant accessibility. You always have your iPhone with you. If some event occurs you pop out the iPhone, take a video, trim it a bit then post it to YouTube or Me.com or email it to someone or send it by MMS.