Updated iPhone or iPhone Video

Apple is expected to begin a summer smartphone battle by announcing details of updated software for the iPhone.

It is thought Apple is likely to announce at least one new handset with up to 32 gigabytes of memory with features including 32 gigabytes of memory, video recording, an improved camera, a compass and improved battery.

It is rumoured that Apple is considering releasing a stripped down cheaper version of the iPhone with only 4GB of memory and fewer features with the price believed to be around £62.

Apple has sold more than 21 million iPhone in more than 80 countries since their launc in 2007. The iPhone has give Apple about 10% of the world smartphone market.

The number one challenger to the iPhone in the US this summer is likely to be the Palm Pre smartphone. The Pre has a touchscreen and a keyboard and has received glowing reports recently.

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