Rumors of a 3G iPhone for the European launch have been around ever since the device first hit the shelves and at one point it was believed that it would just be a matter of a firmware update. Now, with the UK launch date in sight, there is still no 3G version and no plans for one either.

Instead of coming out with a new version of the device, Apple took another approach, discontinuing the low-end model and dramatically reducing the price of the high-end model.
Analysts say that the decision to cut the price of the iPhone was combined with the decision to increase the production of iPhones, but whether or not that was the case, the fact that the handset started selling three times as fast after the price cut means that the company would have to increase production regardless. With the current model now being so much cheaper to manufacture and much better priced, a new model would make little sense, but that doesn’t mean Apple is not working on it.

During the UK media event, Jobs said that Apple is "working on the next iPhone and the next one after that. That's what our customers expect."
When asked about the lack of 3G, the answer was quite familiar. "The 3G chipsets are real power hogs. Handset battery life cuts power to 2-3 hours. Our phone has a talk time of 8 hours and that's really important when you want to use your phone for internet and music. 3G needs to get back up to 5+ hours, something we think well see later next year."

Interestingly enough, Jobs’ estimate of later next year fits with what analysts are saying about the new iPhone model, although they are making predictions for the first quarter of 2008. Just how late in the year the new model will come is not that important, what is clear is that a new model of the device during this calendar year is highly unlikely.