Apple is reportedly ready to introduce a new iPhone in September, with a stronger chip for processing data and a more advanced camera, according to sources from Bloomberg.

The new iPhone will sport the A5 processor and an 8-megapixel camera. A5 processor was added to the iPad 2 earlier this year as a more powerful chip. The chip's higher speed will allow quicker data downloads.

The new phone will run the iOS 5 operating system Apple previewed at a developer's conference earlier in June. Codenamed Telluride, it will feature already-announced features such as improved messaging and photo-sharing, a source told Bloomberg. It is also designed to run on all of Apple's mobile devices.

September is most likely the time we will get to touch at least some kind of an upgraded iPhone - whether the new generation of iPhone will be a real iPhone 5 or a slight upgrade of iPhone 4. Apple is reportedly preparing for a production ramp-up in July, as it contracted out a manufacturer in China.

According to the ongoing speculations, Apple is likely to roll out just minor upgrades to the next iPhone coming in September, while releasing a more radical refresh in 2012 when the company is expected to introduce a model with support for high-speed 4G long-term evolution data.

Apple is also testing a new version of the iPad with a higher resolution screen, about one-third higher than that of the iPad2, according to Bloomberg's source. The new iPad will boast a more responsible touchscreen, one of the sources told Bloomberg. According to Apple Insider, numerous reports have suggested the iPad could come with a display upgrade that would double the tablet's linear resolution to 2048 x 1536. The double-resolution iPad images in the iOS 5 beta also suggest Apple's plan for the improved display.

Apple is also reportedly planning to finish a more affordable version of the iPhone targeted at customers in emerging markets. The lower-priced iPhone will be similar in quality of chips and displays with today's iPhone 4.