Supposed to have "Cut & Paste" functionality.


Apple Inc. is planning to take the wraps off a new version of software for its iPhone Tuesday, and while the company -- as usual -- has given few hints, rumors of new features have surfaced online.

The company is holding a "sneak peek" event for journalists at its Cupertino, Calif., headquarters to introduce the third generation of the iPhone software, plus the tools programmers outside Apple use to build applications for the device.

The current iPhone model, Apple's second, launched last summer and promised faster connection to the Internet.

Shaw Wu, an analyst for Kaufman Bros., wrote in a research note last Friday that he believes the company could add speech recognition and text-to-speech functions that would make the iPhone easier to use on the go.

Wu also mentioned the possibility of a new version of Apple's Safari Web browser for the iPhone and improvements to the iTunes App Store, which sells add-on programs for the device.

Some bloggers have posted rumors that Apple will add a copy-and-paste function, fixing a common frustration among users. Others speculate the company will add multimedia messaging, which lets people snap a photo and send it just like they would a text message.

Also on the list: the ability to power a laptop's Internet connectivity by tethering it to the iPhone, and a premium store to sell $20-and-up applications.