They will make an announcement next Tuesday, it'll be exciting. I'm willing to bet that they will showcase a low-cost iPhone 4S 8GB and 16GB for 99 and 199 respectively. AND, they will also showcase the next generation iPhone in 16GB and 32GB for 199 and 299 respectively. I don't know why i'd be willing to bet it. But I most certainly would...
I just don't think Apple would hold out on the latest technologies with companies like Samsung and HTC bringing out phones every other month with insane technologies. It would allow them to fall too far behind the curve, even with their awesome software optimization techniques.