New iPhone debuts tomorrow, as CEO Tim Cook sees his first test

There’s only a day left to go before Apple introduces the next generation of its ubiquitous iPhone, but the rumor mill continues to churn, with the latest speculation yesterday that the device may end up being more of an incremental upgrade in the form of an iPhone 4S.

Rumors have been swirling almost since the iPhone 4 was released in the summer of 2010, and Apple has declined to confirm or deny any of them.

However, a few things are seen as all-but assured, such as a faster processor, a better camera and larger display. Less sure but prevalent rumors include a major case revision, deep integration with voice commands and two versions of the phone.

Phones aside, rumors have also pointed to the introduction of iOS 5, Apple’s new mobile operating system, iCloud, the company’s cloud-based storage system, and the unveiling of the long-delayed and much-anticipated Facebook iPad app.

New Apple CEO Tim Cook tomorrow will mark his first major product launch since taking over from Steve Jobs in August, an announcement just in time for the holidays. Even in a dismal economy, consumers will likely again line up in droves for a suped-up device.

“Consumers view Apple products as a must-have,” said Channing Smith, co-manager of the Capital Advisors Growth Fund, which owns Apple shares. “Apple phones and products have become almost a necessity. We don’t expect them to falter.”

Apple didn’t return requests for comment.

(with Reuters)

Follow reporter Tim Herrera on Twitter: @tim_herrera.