Slimline iPhone 5 with Quad-mode 4G LTE Chip expected in Q3 2012

The iPhone 5 will be thinner and come with a quad-mode chip offering support for 3G as well as LTE connectivity across all networks, and should arrive in the third quarter of 2012, according to investment bank Morgan Stanley.

In a note to investors, Katy Huberty suggests the next generation iPhone will, amongst other things, have a slimmer body than the current iPhone 4 / 4S model, mainly due to new touch panel techology; and Apple is also looking at a different casing material for the iPhone 5, Apple Insider reports.

The analyst who recently returned from a research trip to Asia where she met with manufacturers and supply chain players, also expects the iPhone 5 to integrate a quad-mode chip from Qualcomm that will enable it to work on all "network flavors".

Katy Huberty is brave enough to suggest a time frame for the release of the handset: during the third quarter of this year, "unless competition heats up."

"What is clear about iPhone 5 is that Apple and its supply chain are positively surprised by the demand for iPhone 4S, which increases confidence in strong sales for iPhone 5 later this year," Huberty wrote in her note to investors.