Apple fans can expect the next generation of iPhones in September, Bloomberg News reported Wednesday.
The new phone will have a more advanced camera and a stronger chip for processing data, according to two unnamed people familiar with the product cited by Bloomberg.
The device is to offer the A5 processor, a chip that has already been added to Apple's iPad 2 earlier this year. The camera will be boosted to 8 megapixels from the 5-megapixel model in the iPhone 4, dpa reported.
Apple would not comment, holding to its policy of keeping everything under wraps until shortly before the release.
Meanwhile, Apple is testing a new version of the iPad that has a higher resolution screen, similar to the one now used in the iPhone 4, Bloomberg reported.
The faster chip will help the iPhone face down competition from rivals like Samsung Electronics Co, whose new models are powered by Google Inc's Android software. Its release is being held up until September to coincide with the release of Apple's new iOS 5, codenamed Telluride, Bloomberg reported.
Apple and Google have already cut deeply into the market of BlackBerry producer Research in Motion, the Canadian smartphone company. Last week, RIM announced a series of layoffs as it missed its profit and revenue targets.
According to research firm IDC, Apple is expected to account for 18.2 per cent of the global market this year, compared with 38.9 per cent for devices running Android.