Apple has set a goal of selling 10 million iPhones worldwide in 2008. (Jason DeCrow/Associated Press)

Apple is expected to launch the second generation of the iPhone on Monday, an announcement that should usher in more details on the introduction of the popular handset to Canada.

The company's CEO Steve Jobs is widely expected to announce the launch of the iPhone 2 during a 1 p.m. ET speech at the Worldwide Developers Conference in San Francisco.

A new version of the device with faster third-generation cellphone network connectivity — so that web surfing and video streaming work better — has been expected for months now, spurred by a lack of availability of current models of the phone at Apple retail outlets.

Other features rumoured to be included on the device are a global positioning system (GPS) chip and a front-facing camera for video calling.

The original iPhone has won accolades — Time magazine named it the Invention of the Year for 2007 — for its touch screen and for bringing the internet surfing experience of a desktop computer to the cellphone. But the iPhone has also been criticized for its use of slower, second-generation mobile networks.

The expected announcement Monday could also herald the long-awaited official arrival of the iPhone in Canada.

The Cupertino-based firm is also expected to announce a series of deals with telecom partners around the world, a group of partners that could include Rogers Communications Inc.

In April, Rogers announced that it would be bringing the device to Canada, but declined at the time to give any further information.

Analysts said at the time Rogers may have kept its announcement brief to avoid letting the cat out of the bag — that when it did offer the iPhone it would be offering the 3G iPhone.

Waiting for the newer, faster version will allow Rogers to sidestep criticisms of its data rates, said Iain Grant, president of telecommunications consultancy The Seaboard Group.

"That's how you stay away from questions like, 'What's taken you so long?'" he said.

Thousands of iPhones are already in Canada, but these have been imported from the United States and unlocked to unofficially work on Rogers's network.

Apple has sold more than five million iPhones so far and in the year since its U.S. launch has grabbed 28 per cent of the U.S. market in smartphones, or devices that offer data capabilities such as e-mail and web surfing.

The company had earlier this year announced new e-mail capabilities to the iPhone expected to be available in June that will allow messages to automatically be "pushed" to the device. The new capability will allow Apple to compete directly with Research In Motion Ltd.'s BlackBerry, which counts push e-mail as the main reason for its success.