Brighthand, the company that supplies carrier Vodafone with the iPhone 3G, is classifying the 16GB version of Apple's touchscreen phone to be EOL which means end of life. SlashGear reports that a leaked email from the carrier to their retail staff suggests that the supplier has only a few weeks inventory left. Other hints that a new iPhone will be introduced June 8th at Apple's annual WWDC include a placeholder on the T-Mobile Austraila web site for a iPhone 32GB. That was later removed from the site by the carrier.
A rumored new iPhone is expected to offer more memory, a 3.2MP camera, a faster processor using a chipset that features improved graphics, and a digital compass. If only the 16GB model is stopped, the 8GB model could become a cheaper entry level iPhone model.
source: iPhone buzz
The new iPhone is now officially announced - you can check the Apple iPhone 3G S Specifications here