These are my predictions for the next generation of iPhone hardware which will probably hit this summer. Original adopters who have stuck with the first iPhone will see their contract expire so Apple is likely to have something that is more of an upgrade than iPhone 3G. Software predictions can be found on this link http://forums.macrumors.com/showthread.php?t=322785 Very Likely: Multimedia Messaging New camera with at least 3-4 megapixels Flash (for camera) Camera will be able to record video which can be sent via email, Multimedia Messaging, or uploaded to YouTube (if true YouTube app will be revamped) Nike + iPod support (just like iPod Touch) New powerful engine (either Intel Atom, ARM Cortex A9 or something else) Same battery life as previous models Will be just as thick or a tiny bit thicker than iPhone 3G Under $500 Will be announced May or June 2009 Will launch in early summer 2009 Unlikely: Sliding Qwerty keyboard sold separately as an accessory for at least $50 (will work with older iPhone models) Apple will allow developers to make 3rd party accessories to attach to the iPhone for use with specific apps Wi-Fi will support Wireless N network Will have model bigger than 16GB Higher resolution screen Longer battery life than previous models Very Unlikely: Larger screen A second camera on the front just like the one on the back to be used for video conferencing via Wi-Fi or 3G Video Conferencing app will be called iChat and will use special effects just like iChat on the Mac Video conferencing app will let you chat with friends who are using iChat on their Macs Remember that this is just my opinion and not fact. If u would like to give me feedback or add to this list please do. Lets hope whatever the third generation of iPhone hardware may be, it is good b/c I plan on buying it b/c my contract expires when in the summer.