Engadget has learned from a "trusted source" that the 3G iPhone will have a built-in GPS and a slightly altered physical design. The device will reportedly trade its predecessor's scuffed metal backplate for a glossy black finish. The size and shape will stay more or less the same, but the new iPhone will be a little thicker, and its edges will be more rounded. Incidentally, the headphone jack will be flush with the body, the volume buttons will be chrome, and the battery still won't be removable. According to Engadget, the 3G iPhone may show up as early as July. Of course, the site points out that Apple could change its plans at any time.

In other news, Skype announced a beta application for Java-enabled mobile phones. The application will allow you to access Skype features such as chat, group chat, presence, and Skype-to-Skype calling. The application will use the phone's voice radio to initiate and end calls, but will switch to the data radio for the rest of the session, drastically reducing the number of minutes used per call. Right now the beta is limited to seven markets: Brazil, Denmark, Estonia, Finland, Poland, Sweden, and the U.K. Skype will evaluate the program for several months before taking it to a full release. The Java application can be downloaded over the air directly from Skype, or downloaded to a PC and then installed in a phone.