Apple set to launch a new iPhone today in an attempt to hold off smart phone rivals.
The souped-up gadget is expected to have 32GB, twice the amount of current storage memory, and a camera that can take video.
A screen-grab apparently leaked from T-Mobile Netherlands show there are four new models offering 16GB or 32GB of memory in black or white.
According to industry insiders the company will make an announcement at the San Francisco worldwide development conference at 6pm BST.<
The handset is expected to have a 3.2MP camera, compared with the current 2MP camera and a built-in compass.
Blogger John Gruber, who has accurately predicted a number of Apple's product launches early, said he heard the new gadget would be called iPhone 3GS although he didn't know what the 'S' stood for.
Steve Jobs, the chief executive, is expected to return from sick leave to attend the launch. He is currently suffering a 'hormonal imbalance' following treatment for pancreatic cancer in 2004.
The conference comes just days after the launch of the Palm Pre smartphone.
Priced at $199.99 (£125), the Pre combines touchscreen controls with a physical keyboard and is able to run several applications at once, unlike the iPhone. It has been praised for its 'beautiful industrial design'.
He also wrote on his Daring Fireball blog that Apple are going to launch a cheaper version of the iPhone for £62.
Mr Gruber said this was likely to be the existing 8 GB iPhone 3G, unchanged but reduced in price, while the iPhone 3GS would be £125.
