If true, this is exactly the kind of leak Apple won't want to see hitting the web before the iPhone's UK launch next month.
The current iPhone could be obsolete by the time Macworld San Francisco comes around in January 2008, insiders have said.
Macworld 2007 was where Steve Jobs officially introduced the iPhone in his keynote speech.
Jobs confirmed at the UK launch of the iPhone that the company are working on a 3G version of the device, a technology that was not included in the first model due to battery life issues.
SmartOffice, an Australian tech site claims to have found out from Taiwan-based sources that "major" software and hardware changes are expected to be introduced to cater for non-US markets.
Among the new capabilities will be GPS and "expanded Wi-Fi capability" as well as the ability to sync with email servers, the site reports.