The iPhone 5 is on the way, possibly as soon as September of 2011.
The iPhone 5 has reportedly entered the final stage of testing, and is already being hauled around by "high level Apple and carrier executives." That's the word today from the the tech site 9 to 5 Mac, which puts the launch date of the iPhone 5 – or whatever the device is going to be called (iPhone 4S?) – at September of this year. Just in time for the Christmas rush! And also more or less in line with the once-a-year Apple launch schedule.
9 to 5 Mac says this newest iPhone won't necessarily get 3G FaceTime support – you'll probably still need to hook up with a Wi-Fi connection to video chat with friends and family – but over-the-air software updates look increasingly certain. (Right now, Apple issues software updates to handheld devices via iTunes; Android updates, on the other hand, are pushed directly to users' handsets. Apple is a hold-out in this regard.)