Suggestions that Apple will launch a 3G iPhone later this year are starting to gather pace following reports on Cnn.com that German chipmaker Infineon Technologies AG will likely be supplying the new systems solution to the next generation iPhone.

According to the news channel, UBS analysts told clients in a note about the move published on Thursday.

According to the report UBS also believes that 3G-enabled iPhones will be released by mid-year, and that the current EDGE iPhone platform is being ramped down earlier than expected to "clean" inventories.

Pocket-lint reported at the time of the Apple iPhone launch in the UK on Steve Jobs' comments that the company planned to launch a 3G-enabled iPhone in 2008.

We will keep you posted.