Kevin Rose, owner of Digg and featured on the cover of the August 14, 2006 issue of BusinessWeek, said on Diggnation (donation necessary) the iPhone will come out on January next year and will have as much as 8 GB of storage. Rose, who also predicted the iPod Nano, claimed to have gotten information from a "solid source."
According to Rose, the iPhone with 8 gigs of memory will cost $449. However, a cheaper one with only 4 GB is also available at $249. There are no plans to contract the iPhone to any one subscriber, the OS is something we haven't seen before on a phone, and the iPhone itself will be as "small as sh*t." Kevin Rose didn't mention it but there are probably two iPhones in the works: the higher-end 8 GB smart iPhone and the lower-end 4 GB regular iPhone.
Other features of the iPhone according to Kevin Rose: Flash memory; Two batteries (one charger): a separate battery to play the MP3; Touch screen is a possibility.