As the anticipation over iPhone 5 continues to give rise to varying rumors, latest reports affirm a summer launch contrary to the hearsay that iPad 2 and iPhone 5 are set for a later release date.

Along with rumors concerning Apple's planned launch of the new generation iPhone, the gadget market is abuzz with leaked images, specifications and features based on what was revealed on the website of a Chinese reseller of Apple parts.The site provides a picture of what can only be described as boldly revised iPhone 4 designs, writes 9to5Mac in its reports.

Apple is said to be working on a completely re-designed iPhone for debut in summer 2011 with a four-inch display to take on the larger screens found on some of the latest smartphones running Google's Android operating system. Apple's next generation iPhone is said to cost less and might feature a new integrated SIM card that would be easily configurable on any supported carrier, the report said.

The iPhone 5 may also carry an upgraded A4 processor, already dubbed the A5 chip, in addition to a new Gobi WWAN chip already found in the Verizon iPhone, designed to work on both CDMA and GSM networks, it added.

Digitimes had previously reported that Apple is planning on bulking up to a four-inch iPhone (screen size) for its fifth-generation device.

The component suppliers noted that the production lines for Apple's next generation iPhone have begun testing, and Apple is interested in expanding the screen size to 4-inches to support the tablet PC market as the vendor only has a 9.7-inch iPad in the market, Digitimes writes.

Other rumored iPhone 5 specifications suggest that the device will run on a multi-core A5 CPU powered with a dual-core graphics core. Some other reports speculated on the addition of Near Field Communication (NFC) technology on new iPhones.