According to the usually well-informed Wall Street Journal, the next iteration of the best-selling smartphone will be thinner than its predecessor and have an eight-pixel - not five - camera.
The paper quoted Apple's suppliers, since the company does not manufacture the iPhone itself.
Three weeks ago, the Bloomberg news agency had reported on the improved camera, as well as about a faster processor.
Apple has remained, as usual, mum about its new product, refusing to comment.
But the Wall Street Journal says the new phone will be released this quarter. Bloomberg, citing informed sources, reported it will be September.
Speculation has been ongoing for months about when the successor to the hugely successful iPhone 4 might hit the stores. Until now, new models have been released around mid-year, meaning the iPhone 5 is behind schedule.
But Bloomberg reported that Apple wanted to wait until its new iOS5 operating system was ready to go. That's been promised for the US autumn.
However, the Wall Street Journal reports that the iPhone 5 is especially complicated to build, because it's so thin. That could also lead to delays.
The iPhone 4 was already thinner than the 3GS. The new iPhone will also reportedly include a new wireless chip from Qualcomm. Until now, those chips have been produced by Infineon.
Officially, Apple has made no comments about its supplier.
Infineon has sold its wireless chip business to Intel, which is getting into smartphones. If the company has indeed lost its contract, that would be a big blow.
There were 18.7 million iPhones sold in the first quarter of 2011 and sales expectations are very high for the new phone, reported the Wall Street Journal, citing an informed source.
Projections are for sales of 25 million units by the end of 2011.
