Apple will introduce the iPhone 5 in September, which will come with a "stronger" chip as well as a "more advanced" camera according to two people close to the project.
News outlet Bloomberg claims that the device will feature the A5 system on chip - which is a certainty - as well as iOS 5 (which was showcased earlier this month) plus a new eight-megapixel camera, an upgrade from the five-megapixel model on the iPhone 4.
Another important piece of information provided by the anonymous source is that Apple is working on a cheaper version of the iPhone aimed at users in developing countries.
That iPhone 5 "lite" would come with an SoC and a display similar to that of the iPhone 4. The latter uses a single core ARM Cortex A8-based 1GHz SoC, the A4, and a 3.5-inch 960x540 pixel capacitive display.
In stark contrast with a recent report by BGR, Bloomberg's sources say that the new iPhone 5 will have a design that will "closely resemble" that of the existing iPhone 4.
They also add that Apple may "eventually" stop guaranteeing that all iOS apps can run on older models such as the iPhone 3G and the iPhone 3GS.
It was expected that a new version of the iPhone 4 would take the place of the 3GS with the launch of the iPhone 5.