Apple is rumoured to be preparing an upgraded version of the iPhone 3G as well as releasing a stripped version for a lower price as well.

An analyst from the Royal Bank of Canada, Mike Abramsky, opened a research note to clients stating that Apple will be rehashing its handsets this summer, with the iPhone 3G gaining an upgraded camera with video recording, a larger flash-based drive and...well, that's it.

Stripped

Rather confusingly, the same analyst also states that Apple will release another version of the iPhone, a 'stripped-down' option, without the 3G, GPS and a roughly 2MP camera.

Fans of the iPhone (and we've heard there are some out there) might be a bit perplexed by this option, as it seems very similar to the original iPhone, albeit for around £75.

However, the analyst also notes that the move would not represent economic sense, given it would cut 20 per cent on the profit margin Apple currently makes on the iPhone 3G.

Unfathomable

While the ins and outs of Apple's strategy are almost impossible, this theory appears unlikely, and a simple tweaking of the iPhone 3G seems a bit unexciting after the past two versions from the Cupertino lot.

Still, TechRadar will do some industry digging to see if this opinion is supported... we'll let you know if we speak to Tim Cook.