Quote:
Originally Posted by
Happyguy1000 
what is smartphone and cheaphone?

Actually I don't agree with myself any more. :-)
A single iPhone sale makes Apple about as much profit as 10 netbook sales make for HP. So I no longer think Apple are motivated to shift the device downmarket.
My guess is that Apple will not do much to change screen resolution or the the way applications work. In other words they won't break the Applications that are currently out there.
And 3.0 software introduces some of the Smarphone features people have been asking for.
The most likely hardware change, I think is adding hardware to encode video. Either a dedicated chip or some OpenCL style use of the GPU. This would allow iPhone to record and upload YouTube clips - and potentially make video calls.
An upgrade of the processor and the RAM is likely too. Top of my personal wish list is speeding up the switching of apps. So doubling the RAM would help by allowing quitted apps to remain in memory for instant relaunch. It would make the device a lot snappier.
One potential new direction is permitting AppleTV functionality on the Phone. But I can see downsides to that too.
C.