Apple is rumored to have a new iPhone that will include the A5 processor, the more powerful chip that Apple added to the iPad 2 earlier this year, along with an 8-megapixel camera, up from the 5-megapixel model in the iPhone 4. Apple is also testing a new version of the iPad that has a higher resolution screen, similar to the one now used in the iPhone 4.
Apple is also working to finish a cheaper version of the iPhone aimed at attracting customers in developing countries. This device would use chips and displays of similar quality to today’s iPhone 4.
An unverified report from Taiwan's Economic Daily claimed Apple will launch the iPad 3 in the fourth quarter with "image resolution 5-6 times higher than iPad 2.
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