According to two people familiar with the next generation iPhone, Apple will not release the iPhone 5 until September. Neowin previously reported a possible August release, however, Bloomberg now reports a September release. A new case design was reported to be possible as well, though it was not confirmed by Bloomberg. The new iPhone will boast an Apple A5 processor like the one used in the iPad 2. An 8-megapixel camera will replace the 5-megapixel camera used in the iPhone 4.
One of the unnamed sources said that Apple is working on and testing the next iPad. The next iPad will feature a screen similar to that of the iPhone 4 and have higher resolution. The unnamed source did not specify specifics in regards to the resolution. The new devices will run Apple's iOS 5, the next generation of the iOS software. All of Apple's next generation devices and some current models will support iOS 5.
In addition, Apple is working on a cheaper iPhone, according to the sources. This phone will be targeted to people in developing countries and will be similar in design to the iPhone 4. In addition, Apple may be phasing out support for the iPhone 3G and 3GS when the new iOS 5 is released, so that it can work on ensuring the best possible experience for its users.