3G/GPS iPhone due in 2008

In the wake of reportedly confirmed iPhone for Europe deals and ahead of tomorrow's press event in the UK, Apple will begin shipping a new iPhone model with faster 3G support early next year while boosting output for the fourth quarter of this year, according to sources cited by TheStreet.com. The new cellular handset -- which could include global positioning capability for navigation services -- will be available some time in the first quarter of 2008, bringing high-speed internet anywhere and satisfying one of the two largest complaints about Apple's smartphone. The Cupertino-based company slashed pricing on its iPhone models on September 6th, addressing the second major concern of critics. Apple's current iPhone model uses AT&T's EDGE network, which offers internet speeds only slightly faster than a dialup connection until the phone comes within range of an accessible WiFi network. Rumors are also circulating that Apple is planning to use Broadcom's Global Locate unit to supply GPS chips in future models. Sources reportedly familiar with Apple's plans say the company is also using TriQuint to produce power amplification chips for the new iPhone.

A separate report indicates that Apple may also be boosting its production numbers for the holiday quarter. Apple was targeting 1.7 million iPhones in its September quarter and 1.54 in the December quarter, the source told TheStreet.com, but now is increasing the numbers for its internal December quarter estimates.

"A successful price cut has cleared the way for Apple to boost iPhone production," TheStreet.com has learned. "A source familiar with the latest info says Apple is raising its manufacturing target for the quarter ending Dec. 31."

by MacNN Staff