iPhone 3G coming up in May

Is it still a rumor when analyst at Bank of America predicts it?
10M in manufacturing, 8M if second half forecast, support for MS Exchange, etc... the new iPhone 3G is expected in San Francisco for the Apple Worldwide developer conference on June 9th. SDK should be ready as well. First one to be delivered in May...

Now the question is: at what price? and will there be upgrade programs for the iPhone bought lately?