It isn't as crazy as it sounds. According to a report by the Commercial Times
apple will be launching three iPhones in June. First a 2.75g (edge like the original iPhone), an updated 3g, and a Chinese targeted CDMA version. The updated 3g phone is no surprise as we have already been expecting it for months.
The CDMA version is a direction Apple will have to go eventually if they want to put the iPhone