Goldman Sachs researchers claim that Apple will introduce two revisions of the iPhone in 2008. I would have guessed that much as well, without doing research.

The researchers do not reveal any details that we didn't already know. Apple will bring a 3G iPhone and maybe a smaller upgrade with more flash memory.

I believe Apple will also launch a mass market iPhone with a smaller form factor and lower price - the long rumored iPhone nano late in 2008.

A smaller version of the iPhone that has full internet capabilities and iPod functions is the key to giving Nokia a hard time.
Via Apple Insider.