New rumors of the iPhone developed last night from Digg on a vidcast.

According to the reporter; the iPhone will be launched in January on all CDMA and GSM providers. The handset will sport a small form factor and will house two battery designs (with single charger); one for playing music, the other for phone functions.

The iPhone will run on flash memory of 4GB for $249 or the 8GB for $449. The possibility of a slideout keyboard is suggested as well, and QWERTY keys eliminated.

Via Engadget