So we’re already obsessed with the iPhone (which comes out next Friday, June 29 @ 6pm), despite the fact we can’t afford one…yet. Se we love this rumor that Apple is—according to “market sources”—prepping a lower cost, 2nd generation iPhone for future release. No word on what features will or won’t be included (but we really hope the YouTube app remains). It all makes complete sense to us, as the $500-$600 USD price tag for the iPhone is undoubtedly overpriced for many, and we’re sure Apple would like the iPhone to enjoy world domination-status like the iPod. So don’t be surprised if you start seeing 2nd and 3rd gen iPhones (and lower-priced 1st gens) in the years to come. Please note that the photo above is purely a mockup.