iMovie to hit the iPhone, offer in-phone editing
It seems like only yesterday we were just getting video recording on your smartphones. The iPhone 3GS was the first iPhone to shoot video, and it's just one generation old. Now the iPhone 4 will feature a mobile version of iMovie, Apple's video editing software.
The software ships on June 24, alongside the iPhone 4. It will only work on the iPhone 4, because the iPhone 3GS doesn't have the processing power to edit videos. Strangely enough, users will have to do their video editing entirely on the iPhone; iMovie projects on the iPhone will not be exportable to the iMac for desktop editing. However, once the project is done it will be rendered in h.264 video format, so it should be readable, uploadable, and editable in almost any software. Plus, the software will only be $5 on the iTunes App Store. Not bad for an on-camera video editing sweet.
— Will Greenwald