RUMOR: Apple’s next-gen iPhone to launch at WWDC 2008, starting at $399
Thursday, April 10, 2008 - 08:40 AM ESTApple's next-gen iPhone "will launch at WWDC 2008, in two or possible three different configurations, and prices starting at US$399. There are a few other tweaks, which, however, may be less than you would expect from a next-gen iPhone," Richard Felton reports for TG Daily.
"Our sources told us that there will be at least two models, one with 8 GB and one with 16 GB memory, priced at $399 and $499, respectively. This pricing structure is identical to current iPhones There is a chance that we could see a 32 GB version for $599, but we were not able to receive a confirmation for this claim," Felton reports.
"Apple is also now working in tic-tock mode between iPhone and iPod Touch. iPod touch should always have a twice the capacity model for the same price as iPhone," Felton reports.
More in the full article here.
[Thanks to MacDailyNews Reader "Markim" for the heads up.]


Very doubtful. The iPhone is a consumer level product. WWDC is a developers conference.
Once rumors like this get some traction, the media starts to expect them to come true and is throughly disappointed when it doesn't.
An update to the iPhone will IMHO, have an event on it's own, bringing in the media, not developers