CNBC's Jim Goldman predicted yesterday that the rumored Apple sub-notebook has already gone into production and will be "unveiled" in January, 2007 at an Apple conference and the 3G version of the iPhone can be expected by mid-year.
Rumors claim this super-portable will use flash memory for storage, instead of a hard disk, and sport a 12- or 13.5-inch screen, making it extremely thin, and lightweight. Speculation is round half-an-inch, under 2 pounds, and a price of under $1,500. Here's Goldman's video.
The most widespread criticism of Apple's iPhone has been reliance on the slow AT&T EDGE network, rather than HSDPA.