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Graphic by mitchener83 via flickr

The newer, faster iPhone 3G, set for release on July 11, promises to chart new frontiers in mobile pornography, according to Time magazine.

The $13 billion adult entertainment industry sees the new Apple phone as a key in the shift from physical distribution (IE. DVDs) to a business model based on downloaded and streaming smut.

The iPhone is “by far the porn-friendliest phone” on the market, says Devan Cypher, spokesman for San Francisco-based porn producer Sin City Entertainment.

The porn industry may have problems with Apple, however. An Apple spokeswoman told Time it does not condone porn on the iPhone and promises to ban adult content from applications being built by third party developers for distribution by the company’s AppStore.