We are still a couple a months away from iPhone 5, but that does not mean that speculations over the next phone's features will
diedown. The latest scoop is that Apple is working on a new and more powerful processor for its next generation iPhone. Current iPhone uses A4 processor, but its newer sibling is expected to sport A8 processor. The rumor has apparently emanated from a Taiwanese manufacturing company which is responsible for supplying parts, including a new processor, for the phone.
Apple has also recently acquired two chip manufacturing companies and this further corroborates the point. Apple is currently using custom A4 processor for iPhone 4, iPad and iPod Touch. Apple is also likely to use Qualcomm baseband for the new phone. Which means that the company may introduce CDMA version of iPhone 5 at the same time of introducing GSM iPhone 5. Earlier, it was speculated that the CDMA version of iPhone 5 may arrive as late as inn 2012.
Source: DigitalTrends