Iphone 3GS does play 1080p videos

There has been some talk lately that the Iphone can indeed playback 1080p and 720p video but there is some issues such as the audio decoder will crash and you have to restart your phone to get the audio output back again. As you can see from the video bellow you can get it to play but the audio driver crash or you will get a lag when it plays in a higher bitrate. Hopefully Apple will release a firmware that fixes the audio issues and even fix the lag in higher bitrate quality this might actually be the best phone on the market if such fixes gets introduced , but i seriously doubt apple will do it because i think their next Iphone will have 1080p support just like when the 3G had no support for recording with the camera but if you jailbroke it you could fix support for that even though it was laggy.