The Latest on a 3G iPhone

A reputable source indicates that Apple will launch a new iPhone model with 3G cellular-wireless networking early next year.

The current version of this smartphone supports EDGE, which is considered a 2.5G standard. However, there have been rumors almost since the initial announcement of the iPhone that a follow-up model with 3G is in development.

A move to 3G would allow this device to wirelessly transfer data much more quickly than its predecessor. This will lead to faster web surfing, and open the possibility of downloading songs from iTunes directly to the device from any location.

Some had speculated that the 3G version of the iPhone would debut in Europe this year, but the version announced yesterday by O2 will not include UMTS/HSDPA.

Instead, fans of the iPhone will have to wait until next year for a model with 3G. At least, that's what an unconfirmed report from The Street says.

Apple will supposedly introduce this device in early 2008, with an announcement likely coming at the MacWorld Conference in mid-January.

This is still within Apple's exclusivity contract with AT&T, so this smartphone will be available only from the same telco as its predecessor.

This report does not say what the new version will cost.

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