Apple plans to launch iPhone 5 in September, reportedly with some possible features like A5 processor and 8 megapixel camera.

Bloomberg reported citing two people familiar with the company's plan that the much-awaited iPhone 5 will feature a more powerful A5 processor that was added to iPad 2 earlier this year and an 8 megapixel camera. The people, who wished to remain anonymous, gave credence to rumors that Apple is working on an iPad with a higher resolution screen. They also said iPhone 5 will closely resemble its earlier iPhone 4 version.

Reports from various other websites have also pointed to similar details. A recent report from AppleInsider also said that Apple will begin production of its upcoming version of iPhone in August featuring the A5 processor and a high resolution 8 megapixel camera.

Sources also lent credibility to rumors of a low-cost iPhone. They said Apple is working on a low-cost version of the iPhone which will be targeted at emerging markets. The cheaper iPhone is likely to feature chips and displays of similar quality to today's iPhone 4.

The report further said a new version of iPad is under process, whose resolution will be similar to iPhone 4. Currently, iPhone 4 boasts of a retina display with a 960 x 640 resolution. It has a pixel density of 326 pixels per inch.

According to an unverified report Taiwan's Economic Daily last week, Apple will unveil the iPad 3 later this year with an image resolution 5-6 times higher than iPad 2. However, the Bloomberg report did not indicate when the next generation iPad will be released.