New iPhone coming in Feb

HI.
While in LA last week I heard that Apple are bringing out a new iPhone in Feb with a much bigger memory.
Does anyone know if this is true as I intend to get one for Christmas and would rather wait for the bigger memory so I can watch movies on it.
Thanks.

It would be fair to assume that a 16GB iphone would be an easy upgrade for apple as the ipod touch already has 16GB in the same form factor. Assume that some minor hw tweaks such as this are most likely after xmas rush has stopped to generate the next set of customers, and most likely a price drop on existing 8GB model. (all assumptions from me of course!).
One thing that you might consider is when deciding to delay purchase is this term & condition from the O2 web site, it appears to suggest that current iphone contracts can be upgraded to a new iphone (assume that this would mean a rev 2) without penalty as long as the customer agrees to another min term contract. That appears to suggest that there is lower risk on future upgrades, not sure if the US have a similar deal? Check out 8.3 & 8.4 on this link,
http://www.o2.co.uk/termsconditions/iphone
8.3 If this Agreement is ended during the Minimum Period, you may be required to pay us the monthly subscription charges up to the end of that Minimum Period. This does not apply if you end the Agreement for the reasons in paragraph 8.4 or if you purchase a new iPhone from us, but in this case you agree that a new Minimum Period will apply.

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