Well, you must have heard that sooner or later in 2009, Apple would make some major announcements for iPhone in India and China. According to the AppleInsider Blog, the newer Chinese version of Apple iPhone would be having modest upgrades. 
According to such reports, the phone will be having major changes only with the memory and camera keeping the other aspects almost same with the earlier phones. As per rumors, the newer version may have a 3.2 MP camera with autofocus and also the phone’s RAM would be doubled to 256MB instead of 128 MB in the current versions.
Also the 400MHz Samsung ARM CPU will be upgraded to 600Mhz.
About the pricing, we have already discussed many a times that it may be drastically reduced. So, lets hope the coming couple of months would bring a lot of changes and competition in the handset market.