The next generation of Apple’s iPhone may not only be a killer phone and a cutting-edge mobile computing platform. It might also be a personal camcorder and editing studio as well.

At least, that’s how BusinessWeek’s Peter Burrows understands it. His reading of the Apple tea leaves is that the company is planning to introduce powerful competitor to the Flip Video from Cisco (formerly Pure Digital). The iPhone’s large, high-dpi screen and powerful processor make easy video editing — a la iMovie — a no-brainer, and the device’s always-on Internet capability means that after videos are edited they can be uploaded to YouTube or other services quickly and easily. Never mind that they can be show off people photo-wallet style on the phone’s gorgeous screen.

Burrows bases his prognostication on Apple’s no-comment stance regarding the latent video editing and recording features already dug up in the iPhone OS 3.0 betas. He also figures that, since Apple is famous for making late entries into hot markets (like MP3 players or smartphones) the video-camera-and-editor combo seems right on the money.

If Burrows is right, Apple will certainly change the definition of what the iPhone is — no longer just a great phone and software platform, but a tool for creating rich media as well. This also bolsters the argument that Apple will soon release an “iPhone lite” — after all, if the regular iPhone is to have so many killer features, it makes sense for Apple to release a cheaper-stripped down version. Still, I’m not sure that Apple would consider the video camera market significant enough to warrant investing time and money in software development. I guess we’ll have to wait and see.

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