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Last Updated: Wednesday, 4 June 2008, 12:18 GMT 13:18 UK
Countdown to iPhone 2.0
By Jim Reed
Newsbeat technology reporter

A 3G connection would solve the main complaints about the original

The covers are widely expected to come off a new version of Apple's touch screen iPhone next week.

The gadget will be the main draw when boss Steve Jobs takes to the stage at the firm's developers conference in San Francisco on 9 June.

There's nothing like a new Apple product launch to get the internet gossips chattering.

Speculation has centred on the possibility of a 3G connection, second camera and even a big price cut.

Here's a rundown of the rumours flooding the web.

3G connection

The current, first generation iPhone calls up web pages and downloads music on O2's sluggish EDGE data network. An upgrade to proper 3G data speeds would mean faster surfing for users outside a WiFi zone and open up the phone to new, higher bandwidth applications.

Probability rating: 99%

Would address the main complaint about the original iPhone. Unthinkable that Apple would miss a chance to correct this. Modern 3G chipsets are power hungry and could cut into the battery life of the new model.

A better camera

A price cut would probably could mean higher subscriptions

The original phone came with a pokey 2 mega pixel camera with no flash. Rivals like Nokia and SonyEricsson have been shipping 5 mega pixel models.

Probability rating: 85%

Not so much of a deal clincher for iPhone customers. But it's unlikely Apple would want to fall too far behind the competition in the camera stakes.

A second camera

A persistent rumour this one. The new phone will come with a second camera hidden behind the touch screen to film the user in conversation.

Probability rating: 40%

Two-way video chats are already popular in countries like Japan and Korea. Apple has recently signed a number of deals to sell the iPhone in Asia.

Built in GPS

Boxes of iPhones
Demand for the hugely-anticipated original iPhone was high

The original iPhone works out where you are in the world by sensing the strength of your mobile or WiFi signal. That data is used by location-based applications like Google Maps to tell you where the nearest curry house is. GPS, which works by sensing satellite signals, is a more reliable and accurate system.

Probability rating: 75%

Location-based applications are the next big thing on smartphones. Rivals like Nokia have been shipping GPS models for more than a year.

A big price cut

Apple signed an exclusive deal with the O2 network in the UK to sell the original iPhone at a fixed price of 269. Some pundits reckon it might let O2 subsidize the new version as it does with phones from rival manufacturers. That could cut the price to 100 although it might mean higher monthly subscription costs.

Probability rating: 40%

Would help Apple hit its sales target of 10 million iPhones by the end of the year. More likely a couple of months after launch.

Budget iPhone

One widespread rumour has Apple launching not just a new iPhone but a range of different models at different prices. That could include a thinner, lightweight 8GB version for $199 (102) and a heavier 16 or 32 GB phone at $399 (204).

Probability rating: 33%

Apple is the only phone maker that can charge a heavy premium for its key product. A budget version would eat into sales of its higher priced iPhone and maybe dilute the value of the brand.

But the idea of a range of iPhones is not completely out of the question. Apple successfully sells a range of iPods at different prices and a wider selection would help the company hit its sales targets.

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