The rumor mills have started, and they seem to get bigger every year. This one is about the iPhone 5 release date. Reuters is reporting that Apple is planning to ship the new phone in September of 2011, with production of the phone starting in July of this year. Reuters sources are also stating that Apple will keep the same design for the new phone, but will include beefier hardware on the inside. My guess is that they are going to give it the A5 chip from the iPad 2, and probably will be upgrading the graphics chipset as well. It should be the same weight, same dimensions, and same retina display as well.
Apple has their WWDC conference in June where they may be announcing the phone. If not, it will most likely come out in their annual event in September. At any rate, you should expect a new iPhone this year. Whether it’s enough of an upgrade, that’s up to you. Me personally, with an iPhone 3G; anything is an upgrade.