The next generation in iPhone applications is on the way, using an ‘augmented reality’ app to, well, improve reality.

These applications are expected to surface in line with the next iPhone update (3.1) and are looking quite impressive… check the video below to see how iPhone + camera + compass + GPS + imagination can create groundbreaking functionality.

Unfortunately this may have cause people to walk the streets staring at their iPhone screen rather than actually participating in human contact, we’ll have to wait and see.

Factron, an expensive Apple case manufacturer, have announced something that certainly… catches the eye.

Their new case, the ‘Quattro’, is a robust looking, mostly metal iPhone case that features a neat interchangable lens section to improve on the iPhone’s camera capabilities. Available lenses include a close-up macro style lens, a fisheye lens and a wide angle lens.

The lenses for the case range in price from $15 – $55… but the case itself is an eye-wateringly expensive $200… which, thanks to the release of the 3GS and subsequent price drop of the previous models, is about $100 dearer than the iPhone 3G.

Source: Engadget Polska