According to a report from 9to5Mac, Apple is testing internally an iPhone prototype that has a modified version of the A5X processor, that debuted in the new iPad. The prototype is being tested in an older iPhone 4 housing to prevent leaks, and it is being reported such a device will not be produced for sale:
Instead, the iPhone prototypes that we’re talking about have a variation of the A5X’s S5L8945X architecture. Like the A5X-powered iPad, these new iPhone prototypes are packing 1GB of RAM. This prototype is labeled N96 internally, but we’re not sure if this internal codename will carry over to the actual next-generation iPhone. Again, this iPhone that we are describing is an internal-only unit built for testing the performance of a new chip in an iPhone, not an actual phone that Apple will produce.
Other tidbits included in the story involve a the next generation iPod touch, which has been discovered to be labeled as iPod 5,1, found within an internal iOS 5.1 build. Currently the iPod touch is labeled as iPod 4,1, so the move to ’5′ would indicate a new hardware refresh.
Earlier today, further rumours were noted that a larger iPhone 5 would launch in December that would sport LTE and a 4″ screen, based on analyst reports.
Separately, it was also rumoured a Foxconn employee has ‘leaked’ the iPhone 5 would be coming in October, as noted by Kotaku.