Rumors continue to swirl about the launch date for

Apple's

(AAPL) - Get Report

next-generation iPhone, with one blog suggesting that the smartphone will launch on July 17.

Apple hosts its Worldwide Developers' Conference on June 8, which some analysts think will be the official

iPhone launch date

, although a later date may also be a possibility.

Citing an unnamed source "closely connected" to Apple's hardware development team, the

Apple iPhone Apps

Web site says that the eagerly awaited device could make its debut next month.

The new version will bring a capacity hike compared to the 8-Gbyte and 16-Gbyte iPhone 3G, according to the source, who says that a 32-Gbyte version is on deck.

With video recording and editing capabilities built in, the new phone is rumored to offer a 3.2 megapixel camera, compared to the 3G's 2 megapixels. The new version is also said to use a combination of its camera, GPS, compass and Google Maps to identify photo locations.

The device's battery life is said to last 1.5 times as long as the current iPhone, and Apple is expected to keep its $199 and $299 price points.

Barely a day seems to go by without one

rumor

or another emerging about Apple, and the company's new iPhone is seen as a key weapon in its battle with

Palm

(AAPL) - Get Report

and

Research In Motion

(RIMM)

.

Palm, for example, will launch its

Pre device

June 6, which may be an attempt to pre-empt the iPhone launch. The Pre, which will be sold by telecom giant

Sprint

(S) - Get Report

, has already won rave reviews, and the device is seen as a

viable challenger

to the iPhone and RIM's BlackBerry phones.

However, Apple's telecom partner,

AT&T

(T) - Get Report

, is said to be considering a

$10 price cut

for the iPhone's monthly service plan when the new smartphone is launched.

Apple did not respond to

TheStreet.com

's request for information on when the new iPhone will make its debut.