With just about five hours to go before Apple’s keynote at WWDC begins, here is what our team thinks will be announced:

We expect a new 32 GB iPhone with video editing and streaming capabilities to be announced. It should be priced between USD 199-299 that will start shipping in July. The current iPhone 3G’s price will see a price drop, ideally down to USD 99.

The new iPhone 3.0 OS will take centrestage as we have learnt that Apple has introduced many more features than what they had revealed at Mac World in January. We have learnt that there will be a lot of new application demos, including DataViz, which is set to unveil its Office Suite for the iPhone.

There is also a possibility of an announcement related to integration of 3G data capabilities into Apple’s notebook range.

A round up of other speculations on the web:

The new iPhone will have a matte finish. It is likely to support video recording and will come with a inbuilt magnetometer. Though highly unlikely, there is a possibility for Apple to introduce iPhones in colours other than Black and White.

While there have been speculations of a front facing video calling camera, we highly doubt that would happen. The networks are just not ready to be burdened with another data intensive service. Remember how the AT&T network was crippled when the iPhone 3G was launched last year?