There’s a lot of speculation out there at the moment around what the next iPhone will bring to the table. An interesting image has been circulating on many sites today that reports to be an image of the new iPhone 5.

If this is true, it would be cool. But I don’t think it’s the real deal. I have a feeling that the next iPhone may do away with the iconic button – and move to just a screen – with new gestures to simulate the key press. The new versions of iOS use a pinching motion with 3-4 fingers to simulate the button press. We’ll see if it moves onto the next device and removes the physical button.

I always like to speculate, so let me do so – and then I can mark myself points when the new handset appears – probably in June/July! I’m sure I’ll do badly!

• Apple will use a new chipset and include more memory on its flagship device. Obviously it will be faster. The iPhone 4 features a custom A4 processor, and Apple may kick its custom chip creation up a notch with a new custom processor called the A8
• I’d like to think it would be a full screen device, by using new gestures it will help you to navigate the device – however, according to multiple sources, it could just have a larger screen around 4″
• As the chipset gets more economical in sucking the battery dry – it may become thinner. However, the current iPhone 4, to me, is the right thickness – so Apple may keep the thickness – and demonstrate longer battery life
• A physical keyboard? Again, another rumour doing the rounds (apparently a prototype has been seen) – but seems to be grabbing a lot of column inches on the web right now. However, Jobs hates keys
• Music in the cloud, streaming, sharing images in the cloud. The acquisition of companies by Apple that specialize in voice recognition, music and video streaming might bring new functionality. Companies purchased such as Siri and Lala.com add to the speculation
• Face recognition: again, with acquisitions, perhaps we’ll see functionality around unlocking your device with your face via the camera…
• Camera upgrade. I believe this is one of the most likely things. The resolution might change from 5 to 8 megapixels on the back facing camera – the new chipset will allow 1080p video at 30fps if the new Omnivision chip is used. True HD video recording in your pocket – 8MP pictures
• We may see the arrival of the iPhone nano, voice controlled, cheaper – with no contract. All information stored in the cloud rather than on the device
• Not iPhone 5 specific, but possibly MobileMe becomes free – again adding credibility that all content will now be in the cloud, whether it’s phone numbers, contacts, video or music
• One of the most exciting rumours is that your iPhone will become your digital wallet using near-field technology – in theory you just swipe your iPhone near a device to make a payment without cash or a credit card to hand. It would allow iPhone 5 users to choose between multiple bank or credit card accounts on the fly, and then make payments at stores instantly.
• We may see an upgrade in the networks the iPhone 5 can use – perhaps it will support LTE, a 4G like network in the US. That would make the iPhone 5 a 4G phone, er… confusing…
• I would love to think a flashing Blackberry-esk LED was somewhere there to show when there’s new email in your inbox – but I doubt it

Overall, after all the speculation, I believe the iPhone 5 will be just an internal upgrade (like the move from iPhone 3G to iPhone 3GS…!)

We’ll wait and see!