Although Apple is planning on releasing the iPhone to other countries, I feel that it is necessary to point out that the US is Apple's strongest market by far
. They will cater to this growing segment at the expense of other countries. I strongly believe this. Although the release of a new generation of iPhone would step on the toes of foreign countries, Apple desires to be a leader in innovation. 16GB phones are right around the corner, and Steve Jobs has expressed his feelings that the lack of 3G on the iPhone is a major issue.
Another thing that we can't forget is that Apple already stepped on a lot of toes by slashing the price of the iPhone 9 weeks after its release. The census was that everyone wanted the 8GB model and not many people were buying the 4GB. Because of this I believe that Apple is anxious to get a 16GB model out there as this is a popular issue among people who have not yet bought the iPhone.
I have been scouring the internet over to find any bit of information on an iPhone 2.0. Although a major update may not be in store, I feel fairly convinced that Apple will announce a 16GB model in Jan. Its also important to note that the iPhone is a convergence device and it lacks that capability with such a small capacity.
My opinion? 16GB phone by March with 3G capabilities ... GPS can wait. Announcement coming in Jan and the MacWorld Expo. Call it wishful thinking but in my mind, Apple is just too aggressive to sit back while everyone catches up.