According to Fortune Magazine, Apple is building 5-6 million new iPhones at their Chinese factories.
The rumor is to expect two new models in either June or July. One will be faster, with more memory and a better camera at least. The other would be a step backwards, a less powerful, but cheaper model.
Another issue facing Apple & iPhone users is AT&T’s 3G network. It seems AT&T is a bit nervous about millions of new 3G phones hitting it’s network this summer and is rushing to upgrade in order to handle the load.