the only thing i like to see from the iPhone is to provide it to all phone carriers and cheaper data plans. the phone carrier around here that has the iPhone is the worst Cell Carrier for my area!

And about the article itself. Ofcource they have next generation i-phone coming, just like Nokia have new models coming as well as any other company. If you don't have new models in drawing board and testing, you are dead as an company...
The beef are the features, what new or better is coming next... Untill then...

I would like to see real bluetooth (stereo bluetooth a2dp/obex file transfers), faster processor hopefully multi-core, the new generation of GPU from PowerVR that is also rumored multi-core, more ram, more built-in storage 32GB atleast, microSD card slot, higher resolution screen for HD movies, HDMI out that works for all apps, Turn by turn GPS, improved OS with multi-tasking, a task manager to kill processes, FM tuner, 4g support, and a bigger removable battery.

i want iphone with..
1) open file system
2) hardware acceleration for 3rd party applications.
3) QWERTY keyboard with gaming optimised buttons.
4) storage expansion slot.
5) atleast 3.2mp camera with flash
6) no restrictions to good 3rd party app in applestore.
7) video recording,MMS,copy-paste,flash,java

Quite a wish list you have there, Rextc!

@hannibal: You're right, a new, improved iPhone was inevitable. We just didn't think it would be quite so soon. I had just talked myself into getting one, too! Now I think I'll wait to see what the next one will bring. That said, do I really want a phone that will be out of date in a year?

1) MMS and Video recording
2) Better Camera
3) Turn/Turn GPS

video recording!
copy-paste!!
flash!
java!
3.2 Camera!

flash, java and copy/paste should have been in an update already.

@JMcEntegart

"do I really want a phone that will be out of date in a year?"
Your other option being getting a phone that is out of date now as even though i am not an apple fan, the iphone is up in the top 3 best smart phones you can possibly get (i say top 3 so we can avoid arguing over that). and seeing as we almost all buy it w/ a data plan/2 year renewal bonus to put towards the phone, it is in a good price bracket for what you get. (though w/out the new contract the price is high, how did apple get away with that "half the price" comment, i still don't know.)

in short, if you are an apple fan, do what apple fans do, wait for the next release, buy it on day 1, complain on day 2, get the fix on day 3, wait 362 days, repeat.

MMS MMS MMS MMS MMS>>>> I WANT MMS!!!!!

32gb, slimmer,faster, yes MMS and copy paste also make the screen fit the front or at least make it a 4 inch screen HD ready. Listen up Apple this is what the Cool people that have Iphones want. I wont be eligible for a upgrade but I would pay $500 for one of what I described, from my 1st gen 8 gb Iphone.

Most everything listed on the comment section and in the article is related to software updates, not hardware. MMS, Copy and Paste, Turn-by-Turn GPS, Voice Dialing, Speed Dialing, Video Recording, Digital Zoom, Landscape Texting, Less App store restrictions, etc, etc, etc.

These are all software.

Apple is notorious for updating their iPod line yearly with minimal to no user advantage beyond a shiny newly designed piece of equipment and a possible increase in the bare-bottom storage capacity.

Outside of an outright redesign of the phone and a possible increase in processing horsepower there really isn't MUCH that Apple could add especially to make it cost effective in todays economic climate.

If I had to guess these rumors will subside just as the netbook rumors will. There will not be a new iPhone until 2010.

From what I read on Wired, it seems likely that they're putting the muscle (uh..the meat? the..mesoderm?) of the upgrade toward gaming.

Brand expert John Tantillo named Apple last week's 'brand winner' (Microsoft was named the loser), specifically citing the fact that Apple, unlike Microsoft, pays attention to its Target Market and what it wants.

I don't doubt that improved options for gamers may fit into an interest of some consumers (although I think that serious gamers would prefer playing at home, with a large TV screen, for hours on end..) - but IF this constitutes the main change in the evolution of the current iphone to the next version, I think that Apple will actually be ignoring the great part of its target market (non-gamers, yes, but also specifically Women.)
Tantillo actually had a post a while back on women as consumers of electronics--and how companies such as Best Buy had ignored these consumers and had started to mend their ways. Apple would be wise not to make the same sorts of mistakes.

Such is the case with any Apple product with the company's habit of yearly refreshes. Of course, the iPhone may not be outdated so quickly. I'm still running a 2G EDGE iPhone and I don't feel handicapped at all without the 3G and GPS -- in fact I feel that those features drain too quickly what is already a barely passable battery life for the heavy user. (Emailing throughout the day alone already takes up most of my battery life.)

iPhone hardware and functionality can't change too dramatically or else it would break all the Apps that already exist on iTunes App Store. Would Apple really splinter the market so quickly? Hopefully not.

That said, at this point I would wait for the iPhone "2,1" too, as I expect it to be a more significant jump than the one from 2G to 3G.

From what I read on Wired, it seems likely that they're putting the muscle (uh..the meat? the..mesoderm?) of the upgrade toward gaming.

Brand expert John Tantillo named Apple last week's 'brand winner' (Microsoft was named the loser), specifically citing the fact that Apple, unlike Microsoft, pays attention to its Target Market and what it wants.

I don't doubt that improved options for gamers may fit into an interest of some consumers (although I think that serious gamers would prefer playing at home, with a large TV screen, for hours on end..) - but IF this constitutes the main change in the evolution of the current iphone to the next version, I think that Apple will actually be ignoring the great part of its target market (non-gamers, yes, but also specifically Women.)
Tantillo actually had a post a while back on women as consumers of electronics--and how companies such as Best Buy had ignored these consumers and had started to mend their ways. Apple would be wise not to make the same sorts of mistakes.

I would like to see a better CPU chipset on the iphone. There is a broadcom chip that is 3x as powerful as the current solution. Saw it at CES.

NOKIA 3510i forever... no need to buy some fancy piece of crap phone that lasts like a day at most on battery... mine holds charge for a week when just texting/making short calls, and for fancy stuff I've got a PDA...

This is already exists in the form of the N97 (QWERTY, better than 3.2mp, and all!). You will be able to legally buy one unlocked as well in Q1/H1 2009. It's just not an iPhone. The RX-51 is WAY cool, but that's a MID with cellular data link.

I just got a 3G phone and really need mostly software improvements not so much hardware. Frankly, it's a bit slow at times so more computing power would be nice. However, cut'n'paste is certainly my front runner along with Flash capability. Better battery life would be good too. I am mostly looking towards developers like DataViz to make the iPhone more usable to professionals.

The best hardware isn't worth much if the applications are missing. On that note, the iPhone needs a better file handling and currently there are several individual solutions to transfer and view files, but they have their own space they live in and say downloading a file from E-mail to store and access on the phone is still not there.

Some people are asking too much. This is a pda that plays games, not a game machine that is also a pda. Your not going to see a keyboard, give up on a removable battery, and if you think that you are going to get HDTV in a 3 to 4 inch screen, then expect to break the laws of physics or ecpect to pay $10,000, these things are not going to happen.
We should be getting Video recording and cut/paste, I just don't know why apple does not have it. Not going to support 4g until AT&T gets the states up to 3g coverage. Those that are having problems with 3g, too bad, it will get better sooner or later. I have a first gen phone and I am finally able to use it in my living room. (They upped the signal strength in my town.) If not getting 3g or phone calls keep getting dropped, then you should have returned it within the first 30 days instead of complaining.

@mallcitybear

"Your not going to see a keyboard, give up on a removable battery, and if you think that you are going to get HDTV in a 3 to 4 inch screen, then expect to break the laws of physics or ecpect to pay $10,000, these things are not going to happen."

keyboard could easily exist on iPhone3, it already exists on the competition. removable batteries are part of some EU laws about clean disposal of materials so we should be seeing them. Having an HDMI output would be nice, the content on the device shouldn't be that high quality but video recording or pictures at 720i (counts as HD but still sucks) is very realistic and you may want to show off those pics and video by plugging directly into a friends HDTV.

Know how many iphones apple has sold. They would be stupid not to have new one this summer with at least some decent upgrades. Personally all I really want is for it to be faster. The processor needs an upgrade and wifi web needs to be quicker. The rest would be nice but thats what it needs.

How about a browser with full Flash Player 10 support.

AT&T has coverage that is total crap around here... so the iPhone is totally unusable Too damn expensive also.

I vote for an iPhone for Verizon Wireless! I moved from AT&T to Verizon a few years ago and will not go back, not even for an iPhone. I'd rather be stuck with Verizons crappy phone selection than move back to AT&T's crappy coverage & consistantly dropped calls, but I'm sure an iPhone for Verizon would surely sell like hotcakes.

A new lithium polymer battery. If you want to add new hardware features, you need more power else you have a phone that works 15 minutes between charges.