The iPhone 5 speaker was noted by Apple to have been improved and after various real-world situation tests, it is indeed true. Using the iPhone 5 on speakerphone is louder and improved compared to the iPhone 4S and previous generations.
iClarified has put together a video comparing the iPhone 5 to the iPhone 4S, iPhone 4, iPhone 3GS, iPhone 3G and original iPhone using a decibel meter. Check it out below:
As you can see from the results below, speaker decibels increased from the original iPhone to the 3G/3GS, but actually went down when it came to the iPhone 4:
iPhone 2G: 91.0 dBA
iPhone 3G: 95.0 dBA
iPhone 3GS: 97.6 dBA
iPhone 4: 92.8 dBA
iPhone 4S: 97.9 dBA
iPhone 5: 100.3 dBA
Here is an image of the new speaker module, as noted in the iPhone 5 iFixit teardown:
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