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New Rumour Reaffirms iPhone 5 Specs

Sources who recently told Reuters that Asian manufacturers have started mass producing a low-cost iPhone 4 with 8GB onboard storage, have also confirmed that the iPhone 5 will be called the iPhone 4S, which will be "largely identical" to the existing iPhone 4 and will be launched by the end of September.

Clare Jim and Kelvin Soh report that while the phone will have a similar chassis to the iPhone 4, it will sport a bigger touchscreen, a better antenna, an eight-megapixel rear camera and almost certainly the A5 system on chip that's currently in the iPad 2.

The new iPhone 5 is unlikely to come in a 64GB model for a number of reasons; (a) 64GB is not a sweet spot in the current memory market which means that Apple would have to pay more than twice the price of a 32GB memory module which in turn would make the iPhone 5 64GB model much more expensive (b) it will add to the number of iPhone SKUs which, would go from 6 to 8 (c) the arrival of the iCloud makes the need for extra memory largely superfluous (except if you have taken more than a few thousand pictures and/or hours of high resolution videos.

ODM giants Pegatron and Hon Hai will make the phone and it is claimed that together they will be producing as many as 45 million iPhone 4 and iPhone 5 altogether possibly to cater for up to six months' volume.