Apple’s annual Worldwide Developers Conference will be kicked off on Monday with chief executive Steve Jobs' keynote at the Moscone West auditorium in San Francisco.

Steve Jobs is expected to introduce the fourth-generation iPhone at the WWDC, which will be attended by as many as 5,000 developers. If the next version of iPhone is like the prototype lost by an Apple engineer in a bar, it will feature clearer display, faster processor, bigger battery and a front-facing camera.

The new iPhone is expected to come with ‘iPhone 4.0’ operating system, which will feature a number of software improvements such as multitasking, a new advertising platform from Apple and a social-gaming network.

Sources suggest that Apple also has plans to introduce Safari 5, with extended HTML5 support and a new "Reader" ability. Safari 5 is also expected to add hardware acceleration under Windows.

Apple may also announce a cloud-based media service as it shut down Lala service in May without any replacement.

Sources also suggest that Apple may make its MobileMe service totally free. Making this service entirely free will attract more people to its integrated Apple experience. This will help it sell more products such as Macs and iPhones.