Here is what they're hearing:
● iOS 5 will launch in the fall and will be a major revamp of the OS.
● It could well be previewed at WWDC, it just wont be released then.
● The iOS 5 launch is also likely to coincide with the release of a new type of iPad, which we previously reported on.
● The new iOS will be heavily built around the cloud, and we could see several new services launch from Apple that take advantage of this.
● Yes, one of those is very likely a "music locker" service. There is also a fall launch aim for this, during Apples annual music-themed event.
● But much of the cloud stuff will first be talked about at WWDC, Apples developer event which will take place in June.
● One of the new cloud service elements is likely a location service that focuses on finding friends and family members.
● As we said yesterday, OS X Lion is still on pace for a summer release some of the new cloud components are likely to be baked into it as well.
If Apple does decide to release iOS 5 in the fall it would be a break from their typical schedule. It's unclear if they would still launch a new iPhone in June/July or whether this would be pushed back for release alongside the new firmware.