An interesting rumor from DigiTimes suggests that the next generation iPhone 5 will feature a 4-inch display and an A5 processor.
Since the first iPhone’s launch 3 years ago, Apple still keeps the screen size of 3.5 inch. Although they have improve their performance with better resolution and IPS technology, iPhone still needs to expand the screen to compete with many larger screen Android devices out there.
Meanwhile, iPhone 5 will feature the next gen ARM Cortex-A9 based A5 processor whereas iPad 2 will be based on the A4. Both of them will be manufactured by Taiwan Semiconductor Manufacturing Company.