Cupertino, CA (AHN) - Apple, producers of the highly-popular iPhone, are said to be gearing up for the next generation iPhone, which will feature 3G capability.

Coinciding with the iPhone's one-year anniversary, Bank of America says that Apple is planning on a limited release this May, with more units to be made available in the fall.

The advanced feature will beckon a faster iPhone with better Internet access, and likely GPS navigation.

The prediction by BofA financial analyst Scott Craig, is expected to become a formal announcement in the coming months.

"This likely implies a launch announcement in [the second calendar quarterly]," said Craig, according to Apple Insider.

Craig further noted that a 3G iPhone release could be a catalyst for a boost in iPhone sales, which have been mediocre ever since its release. Projecting iPhone sales to reach 8 million for this year, he acknowledged that each million added to the number would equal about $400 million in additional sales.

CNN Money reported that an analyst predicted the 3G iPhone will carry a larger price tag, which will be announced at the same time that the $500 model with the larger memory will go through a price cut.

Should Apple's iPhone sales increase this year, however, it will still encounter stiff competition brought on by other mobile phone manufacturers that have introduced the touch screen technology, such as Sony Ericsson's soon-to-be released Xperia phone, which also features a sliding keyboard.

Another potential competitor for the technology would be Garmin's nuvifone, which will feature a touch screen GPS device that will also have phone capabilities.