Apple will move the iPhone to a 4-inch screen and use a dual-core A5 processor, likely running at 1.2GHz.
The reports come from Taiwanese component suppliers.
Samsung will provide brand new Super PLS (Plane-to-Line Switching) displays to Apple for the iPhone 5, with Apple having purchased a rumored whopping $7 billion worth of the component for the year.
As compared to the IPS displays seen in the iPad/iPhone 4, the Super PLS screens are brighter, have better viewing angles and are cheaper to produce.
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