Is the next-generation iPhone on the way?

Rumours are growing that Apple is in the midst of developing an updated model iPhone and new iPhone Nano product in 2008.

According to AppleInsider, last week a Goldman Sachs analyst reported that his contacts in key component suppliers and manufacturers in east Asia believe a second-generation iPhone is currently in final design phase, and looks set to be ready by the second half of 2008.

And I4U News reports that Apple will soon bring a 3G iPhone and maybe a smaller upgrade with more flash memory, followed by an iPhone Nano product. The iPhone Nano will be smaller and cheaper than the original iPhone, but presumably with a smaller screen.