MacEdition posted an article in their annoying MacTheKnife-esque style regarding a rumor of an Apple branded Photo editing app:

the new package, tentatively dubbed iPhoto, will let Auntie Em and Uncle Henry modify and enhance their snaps with simple controls and create electronic greeting cards, calendars and other personalized cheesecake via an assortment of templates.

It seems iPicture might make more sense as Apple filed a trademark for iPicture in March.