Apple is preparing to introduce a range of new features to the iPhone in the form of software updates for the device, a report claims.

Such features will include the introduction of the capacity to use iPhone as a mass storage device, disk mode and tight integration with Mac OS X Leopard.

The report - which is based on unverified rumour - also predicts integration with iWork, a full file browser, widescreen keyboard support in applications other than Safari, and support for copy and paste.

This report even goes so far as to predict the introduction of iChat support, photo sharing, customizable ringtones and .Mac integration.

Improvements to the built-in camera and the addition of support for Adobe Flash are also described in the report.