The Register is reporting that according to a manager at Spain's Telefonica cell carrier, Apple has plans to drop a sexy 3G iPhone on the world in May. Translated from the Spanish, the exact quote from the manager is: "OMG OMG iPhone OMG 3G OMG Apple May Rumors OMG!!!" OK, not really. Here's the real quote:

When iPhone will be launched in Spain?
Telefonica expects it on May.

Will Telefonica release a 3G iPhone version on May?

Yes! They expect it.

Take this with a grain of salt the size of your fist, but the timing does seem to make sense, coming about a year after the first generation. What else do you think iPhone 2 will have, other than the obvious boost in HD size? [Sevenclick via Register]