Faster, More Powerful iPhone Set for Late 2011 Launch

A new report released today by Bloomberg is strengthening rumors that Apple is prepping an upgraded model of its iPhone 4 handset for launch in September. According to the report, the next-generation iPhone will be getting the dual-core A5 processor that currently powers the iPad 2, as well as a new 8 megapixel rear camera.

While the processor upgrade has been considered a given – Apple made the same move with the A4 chip, launching it in the iPad and then bringing it to the iPhone 4 – there has been quite a bit of speculation as to whether or not the rear camera would be seeing any change at all. Apple’s current 5 megapixel lens has stood up well over the past year, and continues to be one of the better phone cameras available. It appears with today’s report that Cupertino is leaning towards a higher resolution shooter for the next iPhone.

With the next major release of their iOS operating system set to happen around the same time, it’s been speculated by many that Apple simply delayed the release of the next-generation iPhone to coincide with iOS 5. Rumors have pinned the delay on everything from Apple not having the hardware finished to the company permanently changing their hardware release schedules for the iPhone. June’s passing of the Worldwide Developers Conference without new iPhone hardware marked the first time since the launch of the iPhone that the company missed an annual refresh cycle. It’s been confirmed that the next iPhone handset is in testing, but no hardware leaks have yet appeared to show what’s actually going to be inside the phone, or how it will look.

Bloomberg’s report also pointed out that their sources seem to have confirmed that Apple really is working on a less-expensive iPhone model aimed at developing countries. Apparently, “This device would use chips and displays of similar quality to today’s iPhone 4”, which would indicate that Apple may be stepping up the pace of their hardware release cycles. If the iPhone 4 moves down to become the “lower priced” model, then Apple will surely look to have at least one model above it, and may aim for two to assist with market segmentation.

The report also made mention that Apple is testing the iPad 2’s successor, which may include an upgraded display. It had disappointed many that the iPad 2 shipped with the same display resolution as the first iPad, especially after Apple had made such a big deal of the Retina Display technology inside the iPhone 4. It’s also rumored that the iPad 3 will be getting a more responsive touchscreen, which Apple may or may not leverage into additional features.

Apple’s stock gained about 1 percent in the day after the report was released. The company did not make comment on the report, and has kept completely silent on anything related to the next-generation iPhone handset.