The biggest rumours have been generated by Digg founder Kevin Rose, who is sticking his neck out and claiming the following:

• Cut and paste by double tapping a word, then pinching to choose the highlighted text (which is apparently indicated by a set of quote marks), and choosoing from a button: cut, copy or paste.
• Applications will still be unable to run as a background process
• No video recording for this release
• All the features that the Palm Pre will have

The last statement is quite vague, but alludes to a move by Apple to head off their competitor even before the product hits the market.

Kevin Rose’s track record in predictions aside, there is also speculation that Apple will be releasing a new iPhone model.  Apple has been consistent with its device refreshes, launching the original iPhone in June 2007 and the iPhone 3G in 2008.  An Apple rumours site, MacRumours, is even suggesting holding off on iPhone purchases as a new model is imminent.

Personally, I think that with new devices such as the Palm Pre and the next generation of Android phones emerging, the smartphone market is nearing in a “perfect storm” situation.  Exciting times indeed for gadget-o-philes!

via Gizmodo.