MacRumors is reporting that Apple's new iPhone 3GS, while indeed using Imagination Technologies' PowerVR graphics core, may just have a little more under the hood than previously thought:

iPhone developers, however, have discovered that the iPhone 3GS has extension files named "IMGSGX535GLDriver" suggesting that the new iPhone uses the more powerful graphics processor intended for "high end" mobile devices. This may not be entirely conclusive evidence by itself but it is consistent with a report from a Anandtech commenter who claims to have heard directly from Apple engineers at WWDC that the iPhone 3GS does indeed use the SGX 535.

Zoom. Zoom.

In a related story, Apple has apparently raised their stakes in Imagination Technologies to 9.5% on the heels of Intel's 16%.