With Apples forthcoming World Wide Developer Conference scheduled to start on the 8th June 2009, the rumour-mill has been on overtime with the anticipated announcement of the next generation iPhone.
As usual nothing will be confirmed until the day, but the general betting are for the inclusion of the following features.

1. Memory - Expect 16GB to be entry and 32GB to be the premium model.
   Improvements to Camera - are almost a certainty.
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2. Expect auto-focus and possibly a flash Video Recording - A huge omission in the current offering - The increase in memory and processing, in these YouTube times, makes this a given Compass - Several sources are quoting an compass feature to be used in navigation and other iPhone apps.
   
3. Subtle redesign of the exterior - Nothing major anticipated here as the design is proven, but a Matt Finish, refined bezzel and maybe a backlit logo are all being touted as ways to let your 1st and 2nd gen mates know what you've got the hotest iPhone.
   

Already Apple have on the release of iPhone OS 3.
0, which introduces features such as Cut and Paste as well as support for subscription revenues for application developers.
Following his medical leave Steve Jobs is also expected to make an appearance (potentially via iPhone video) to assure both investors and consumers of his continued involvement.
Of course June could come and go without a sniff of a new released product.
However the closer we get to the date the more likely we see evidence of resellers discounting stock in anticipation of the new products.