A 64 GB version of the iPhone 4 has leaked out of Foxconn in Shenzhen. The model is only a prototype with very few in hand by the owner but it is proof that Apple may be expanding the memory of the new iPhone 5. MIC Gadget has also somehow gotten a hold of the phone. A quote from MIC Gadget says:
Apparently, this 64GB iPhone 4 is not for sale in grey markets of Hong Kong. The owner of this engineered prototype told us that he got it from a source who has a small quantity of these prototypes. They are definitely leaked from Foxconn’s factory in Shenzhen. What’s more, according to the owner, he believes that the next iPhone will bring 64GB storage capacity to users. Well, we think Apple is planning to update the iPhone 4 with small upgrades, at least featuring a new 64GB model.
It is possible that Apple could upgrade the current iPhone 4 with larger storage but it would be extremely uncharacteristic of Apple. Apple has never shipped a iPhone that is over 32GB in the past but I believe there is a demand for larger storage. MIC Gadget has also released a video of the phone below: