Photo by baldheretic Dwight Silverman of The Houston Chronicle's Tech Blog and co-host of Technology Bytes shows off his iPhone

The rumors are circulating over what is in store for Apple at a software developers conference in San Francisco. There has been talk that Apple is unveiling a $99 iPhone. "iPhone 2009" is how it is listed in T-Mobile's inventory system. Nine MSN reports:

"My gut tells me we are going to see a next-generation iPhone and Snow Leopard be the two stars of the announcements," Gartner analyst Van Baker said, referring to Apple's smartphone and a new Mac operating system.

"Steve may do a cameo, maybe, because there is strong evidence from multiple sources he is getting back to good health," he said.

Jobs health issues have been a company secret ever since the founder of Apple had an operation in 2004 for pancreatic cancer. The speculation is that Jobs will return to his post for a short period in order to hand over the keys to those who have run the company in his absence. As for his return to the business scene only time will tell. According to FT News:

“This is a race to capture developer resources, and Apple is way ahead,” said Kathryn Huberty, Morgan Stanley technology analyst. “It’s all about gaining share, and then the hardware sales will follow.”

As for the iPhone 3.0 rumors are betting that more additions to the software programming will be announced at the convention. For the latest news on the convention PC World is planning on bringing them to Twitter with live updates throughout the morning. You can follow the announcements via @pcworld on Twitter for live updates.