The production of Apple iPhone 5 and iPad 3 is all set to start and the devices will be launched in the US in October, reports have said.

Taiwanese companies involved in the manufacture of Apple devices have started preparations for the production of the fabled Apple devices, and as per current plans both gadgets will hit stores in the US in October, DigitTimes reported.

Apple component makers in Taiwan, like Foxconn Electronics, Simplo Technologies, Dynapack International Technology, Largan Precision and TPK Holding and Wintek have geared up for iPhone 5 and iPad 3 production, the report shows.

The production per se will start in marginal volumes by next month, but larger volume output can be expected by October. Contrary to earlier reports, Apple will be releasing only on iPhone this Fall, the report adds.

Ever since Apple passed up the original iPhone 5 release date of June WWDC, speculation has been rife on when exactly the gadget will make an appearance.

At the WWDC, Apple had said the iOS 5, or its latest version of the mobile operating system, would be ready for rollout in the Fall. Therefore the focus of iPhone enthusiasts shifted to a possible September launch of the new device. Meanwhile theories mushroomed over Apple's delay in launching the new version of iPhone and the advantage this gives to the Android camp.

Keith Bachman of BMO Capital Markets said the iPhone 5 will be delayed as much as mid-2012, whereas Deutsche Bank analyst Chris Whitmore kicked up a storm by predicting that Apple will launch a cheaper iPhone 4S in September.