Reuters reports that the iPhone 5 will begin production in July and ramp up for a September release. Apple typically holds a fall media event at the beginning of September to showcase its iPods. This would be the perfect place to showcase their new iPhone as well.

The new smartphone will have a faster processor but will look largely similar to the current iPhone 4, one of the people said. They declined to be identified because the plans were not yet public.

The companies would begin production either in July or August before shipping components to Hon Hai Precision Industry Co Ltd, flagship of Foxconn Technology Group, for assembly, they said.

The next-generation iPhone is rumored to include the dual-core A5 processor and enhanced graphics as the one found in the iPad 2, possibly 64 GB of storage, a larger screen, a metal back, and new cloud-based functionality through Apple’s upcoming iOS 5. The upcoming WWDC Event Apple will probably be introducing iOS 5.

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