The rumors are that the current iPhone stock is down to nothing. You can't buy it on the online apple store right now, and most retail stores don't have any, and won't be getting any new stock right now. This leads to a May iPhone 2, before WWDC.
There is also a rumor that states that a new device will be announced at WWDC, a PDA type device that is 1.5 times the size of the current iPhone.
There is also a rumor that states that a new device will be announced at WWDC, a PDA type device that is 1.5 times the size of the current iPhone.