In a recent research note, Goldman Sachs analyst David Bailey said that he believes Apple will introduce not one, but two iPhones in 2008.
Bailey's contacts have lead him to believe that "Apple has several important new products lined up for 2008," though they aren't expected to have the same impact as the launch of Apple's inaugural iPhone device.
The first revision of the iPhone is expected to come in the form of simply a storage upgrade. The next is a second-generation iPhone currently in its "final design phase." The device is expected to "have a similar form factor as the current version although it could have a different look and will probably include 3G capability."
AT&T's CEO leaked that a 3G iPhone would be made available next year, so that's little surprise. 3G capability will of course enable the iPhone to stream data, like audio (and iTunes Radio), at faster speeds.
The analyst estimates that the next-gen iPhone will launch sometime during the second half of the year.
Bailey also said that the iPod Touch and Nano are seeing strength in demand. Separate reports have said that the iPod Touch was selling "far better than expected," causing one of the Apple's manufacturing partners to increase production to 5.1 million units for the current quarter. In this week's report, Bailey added that his supply chain contacts are expecting yet another year of double-digit iPod growth in 2008.
[AppleInsider]
(Audi's iPhone integration pictured)
Nokia's music deal includes music at 192 kbps and 128 kbps, plus their internet radio capabilities over 3G networks. Looks like cell phones are making their push into the radio market. XM and Sirius really need to get on board.