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Two people familiar with Apple's plans relayed the information to Bloomberg, while also bolstering rumors that Apple is working on a higher resolution iPad. Apple's next iPhone "will include the A5 processor, the more powerful chip that Apple added to the iPad 2 earlier this year, along with an 8-megapixel camera, up from the 5-megapixel model in the iPhone 4," said the publication's sources.
As is to be expected, the new device would come with iOS 5, which is due out this fall, according to people familiar with the matter. Sources also said the new iPhone would closely resemble the iPhone 4.
AppleInsider reported in April that the so-called iPhone 5 will sport the A5 processor currently found in the iPad 2 and a higher resolution 8 megapixel rear camera, and would begin production in August. Numerous other reports have pointed to similar details for the next-generation iPhone.
The report's insiders also rekindled a rumor that Apple is working on a cheaper version of the iPhone for emerging markets using "chips and displays of similar quality to today's iPhone 4." Rumors of a low-cost iPhone emerged this spring, though there is some disagreement regarding the details of the project.
"Apple is also testing a new version of the iPad that has a higher resolution screen, similar to the one now used in the iPhone 4," the Bloomberg report cited sources as saying. The iPhone 4 currently features a Retina Display with a resolution of 960 x 640 and a pixel density of 326 pixels per inch. The resolution of the next-generation iPad would be about "one-third higher" than the iPad 2's display and will feature a more responsive touchscreen, people said.
Various reports have suggested the iPad could see a display upgrade that would double the tablet's linear resolution to 2048 x 1536. Last week, double-resolution iPad images in the iOS 5 beta sparked renewed speculation that Apple is planning the improved display.
Also last week, an unverified report from Taiwan's Economic Daily claimed Apple will launch the iPad 3 in the fourth quarter with "image resolution 5-6 times higher than iPad 2." If the number of pixels of the current iPad 2 were multiplied by 5-6 times, the resulting pixel density would be 330 ppi and 396 ppi respectively.
Such a solution would be less elegant, however, than the simple doubled resolution of the iPhone 4 compared to the iPhone 3GS. Apple designed iOS to automatically scale existing apps to the higher resolution of the iPhone 4, while also allowing developers to provide custom artwork that would make Retina versions of iPhone 4 apps look "exceptional."