The component suppliers noted that the production lines for Apple’s next generation iPhone have begun testing, and Apple is interesting in expanding the screen size to 4-inches to support the tablet PC market as the vendor only has a 9.7-inch iPad in the market.
This kept aside, one other report from the same source states that the iPhone 5 shall probably have a dual-core A5 CPU, in order to compete with the new Samsung Galaxy S II, whereas the iPad 2 shall have an enhanced variation of the current A4 chip. Reports also indicate that the iPhone 5 & iPad 2 may not have the Home button as well.
Apple is reportedly looking to outsource the production of its A4 processor as well as the next-generation ARM Cortex-A9-based A5 processor to Taiwan Semiconductor Manufacturing Company (TSMC), according to industry sources.
According to Digitimes Research, the iPad 2 will support an enhanced version of the A4 and the A5 will power the iPhone 5. TSMC will initially produce the improved A4, and could likely become the exclusive manufacturer of the A5.
The fact remains however, that we can not be entirely sure about what the Apple iPhone 5 may turn out to be unless and until we have official word about the specs and features from Apple.