Apple upgrades something just about every 6 months to coincide with one of the MacWorld shows, so I wouldn't doubt the next upgraded version of the iphone will be out by January. It'll be the same price as the previous version of the phone. It's Apple's MO.

For the enthusiasts that follow the way the Apple works, they know that if they just wait a few months something beefier at the same price point will be out. Some people wait, but the "gotta-have-it-now-no-matter-the-cost" crowd jumps in. Of course since most know the next biggest thing will be out a half a year later, no matter what, they figure you have to jump in at some point.