This is very much a rumor and will probably remain that way. However, according to iphonect.com:

I wish the real iPhone had this feature! But no, there is this Meizu M8 Phone that has been rumored on a few forums, that packs a way better array of features than the iPhone (or at least this is waht number say!):

• 3.3-inch 720×480 pixel display – the best I’ve heard so far
• 3 megapixel camera, and an ARM11 CPU capable of recording video at 30fps at the device’s full 720 x 480 resolution – great improvement even over some dedicated digital cameras on the market.
• Tiny 57×105×11.5-mm
• 3G – the Chinese version.

It is rumored that it will hit Asia before the real iPhone will, sometimes in 2008. A new legal case for Apple attorney, aparently.

iPhone with 3G coming out! [iphonect.com]