The iLife application would include programs like iPhoto, iMove and GarageBand, which would create new possibilities for creating multimedia using Apple’s mobile devices, according to a story on Boy Genius Report.
The article said iOS 4.3 will not support older devices such as an iPhone 3G or a second-generation iPod touch.
The changes being made to FaceTime, Apple's native video-chatting app, include a revamped icon and Apple fan blog iSpazio found new effects in the code for iOS 4.3 that could be included in both the video camera and FaceTime.
There are a few new features that appear to only apply to the iPad. iOS 4.3 will allow iPad users to configure the side switch above the volume control for either mute or orientation lock, the report said.
iAds, Apple's mobile advertising platform, will also feature full-screen ads on the tablet.
It was also reported that iOS 4.3 will turn all iPhones into personal hotspots, and could add further miltitouch functionality, abandoning the need for the home button.
In addition, rather than using button pushes, gestures will be used to navigate to the home screen or use the app switcher, signifying a move towards button-free next-generation devices.