Apple has already spoken to their manufacturing partners in Asia about the next generation of the iPhone with SmartOffice being told that major software and hardware changes are expected to be introduced to cater for non US markets such as Europe, Asia and Australia.

Among the new capabilities will be GPS and expanded WiFi capability as well as the ability to sync with email servers. Apple research and development executives are according to sources in Taiwan trying to overcome a lack of expanded media support for  Flash memory.

In Australia there is also concern that the phone in its present configuration will not be fast enough to handle the Telstra Next G Network, which is described as the world's fastest mobile phone network.

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