There are a lot of rumors out there about Apple iPhone. It was because Steve Jobs wasn't introduce the iPhone 5 (or maybe iPhone 4S) at the previous WWDC. Now, Bloomberg is reporting that the latest version of the iPhone will coming in September. They also said that there will be the dual core processor like on iPad 2. The camera will also be improved, although the current 5 megapixel is still good enough.
Moreover, the report also said that the next generation of iPhone will look similar with the current version, which is also neglecting the recent rumors which said that the new version will get a radical change. I think it is wise for them to have a strong update for the system, but leave the exterior design because many people still love the design on the iPhone 4.
Apple could also upsize their screen into a 4 inch screen. It won't sacrifice much of their current design anyway. The latest report also said that we could get a cheaper version of Apple iPhone to compete with the low-end Android. I'm not sure about this one, as iPhone 3GS is still available from AT&T with $50 and it gets a lot of promotion from them.