Imagination, which counts Apple as one of its owners, has provided the GPU (graphics processing unit) for every iPhone to date, including the current iPhone 3GS PowerVR SGX, so it's not unreasonable to assume the latest, greatest PowerVR SGX545 introduced at CES will be in the 4th generation iPhone, likely to be announced in June/July:

SGX545 will also deliver OpenGL ES 2.x and OpenGL 3.2 to deliver class leading 3D graphics performance, and will also support OpenCL 1.0 full profile capability which will enable mobile and embedded applications to take maximum advantage of the capabilities offered by these GPU APIs for both 3D graphics and general purpose applications.

Could we see this spun into a new, ARM Cortex A9 multi-core cpu by Apple's own PA Semi? We've already got great 3D gaming, what's this one designed to do, burn our eyeballs into the back of our Avatar-scorched skulls?

[Imagination via 9to5mac]