The Korea Times said on Tuesday that a new version of the iPhone is coming to KT, Apple's partner in Korea, in April. The paper added that KT is set to sell the devices to its bigger local corporate clients as a "litmus test" in April, citing KT officials. The upgraded iPhones are expected to reach the local Korean distributors in June.

The new '4G iPhones' will reportedly be equipped with organic light emitting diode (OLED) screens on surface and live video chat functionalities and it will be powered by dual core processors and powerful graphic chips for better video and photo captures.

An upgraded iPhone could be Apple's answer to the growing interest around Android smartphones, including Google's Nexus One device. Both Samsung and LG are currently promoting their latest Google-powered phones, which are generally offering greater flexibility for programmers to build applications. A new iPhone could be a good Google's rush in the smartphone market.

Apple has not commented on the matter, which remains a rumor until the Cupertino-based company confirm it. For now, Apple continues to promote its App store claiming that more than three billion apps have been downloaded by iPhone and iPod touch users worldwide so far.

"Three billion applications downloaded in less than 18 months?this is like nothing we?ve ever seen before," said Steve Jobs, Apple?s CEO.