iPhone Plays 1080P HD Video, May Be Useful for HD iTunes TV Shows

According to Gizmodo, "a friend in the industry" has seen the iPhone playing 1080P video on several occasions without a problem. Although HD doesn't make sense on the iPhone's small screen, it could be useful if iTunes starts selling HD TV shows. Keeping HD movie rentals on the Apple TV is one thing, but customers likely won't settle for storing purchased content there.

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