Apple iPhone 5
Chief executive officer of Apple components partner Foxconn Terry Gou said that iPhone 5 will beat Samsung’s flagship phone – Galaxy S3. Bryce Haymond, Blackpool Creat

Yet another report has surfaced that indicates production of Apple's next generation iPhone '5' has begun. According to Digitimes, a report from Taipei has said that Shanghai's Pegatron has begun manufacturing the new iPhone.

A similar report earlier in July from a Japanese Apple blog made a similar claim, citing listings for the iPhone '5' cases on Chinese e-commerce site However, BGR has reported that these production rumors are not true, since Apple must go through numerous stages before a product in manufactured. Two of these steps include the engineering verification test and the design verification test, and BGR speculates that the units Apple is currently producing are just test samples and may not reflect the final product.

The Taiwanese source that Digitimes cites also said that the eastern Chinese factory is expected to see shipments of notebooks decrease in the third quarter of 2012. However, orders for the new iPhone will make up for this decrease.

Demand for Apple's next-generation smartphone is said to surpass that of Samsung's Galaxy S3, which is considered the lead competitor for the iPhone. Although the Korea-based company has just announced that its flagship mobile device has reached 10 million sales, a new survey indicates that iPhone'5' demand triples that of the Galaxy S3.

According to the survey conducted by ChangeWave, 31 percent of users voted that they will purchase an iPhone '5' in the future, while only 9 percent said that they will buy the Galaxy S3. The poll was taken at the end of June and included a brief description of the features and highlights for both smartphones. Although the next-generation iPhone has not been released yet, the description included a summary of the expected highlights, which include a larger display and 4G LTE connectivity.

But Samsung's Galaxy S3 isn't the only device being outshined by Apple's upcoming product. Another report from the same company indicates that the Cupertino, Calif.-based electronics manufacturer will break its own record with the release of its next-generation device. According to the survey published in Computer World, 14 percent of those polled said that it is very likely that they would purchase an iPhone '5.' Contrastingly, results from an October 2011 poll indicated that only 10 percent voted that they would buy Apple's iPhone 4S.

As the summer draws to a close and the fall approaches, speculation and launch rumors surrounding the next iPhone have reached an all-time high. It was just reported by Reuters that the gadget will come with a 19-pin dock connector port rather than the 30-pin port. This reason for this is to make room for the earphone moving to the bottom, a source familiar with the matter said to the newswire service. Reuters also reported that the iPhone '5' is expected for a release date around October.

Despite these reports, Apple has been tight-lipped about its next-generation smartphone. Here is a list of rumored specs and features that fans are hoping to see in the iPhone '5,' courtesy of Computer World:

  • A 4-inch display
  • An improved quad-core processor, likely manufactured using 32nm process tech
  • Improved graphics and a better camera
  • A new Dock connection, likely to be Thunderbolt or mini-USB
  • Tougher glass
  • A thinner chassis
  • International support for those 4G/LTE networks which exist
  • Much-improved iCloud integration
  • iOS 6: Many improvements in Siri
  • iOS 6: Apple Maps
  • iOS 6: Passbook, potentially though not necessarily featuring NFC payment support
  • iOS 6: Facebook and Twitter integration

Pegatron, the company located in Shanghai that has reportedly begun production of the next iPhone, will also be a second production source for the new version of the iPad, Digitimes reports. However, until Apple confirms these plans as well as those for its iPhone '5,' this can only be considered rumor. The alleged iPone '5' is actually the sixth generation of Apple's smartphone, and the name of the device has not yet been confirmed.