Apple Inc. is gearing up production of iPhone 5 but some analysts say iPhone 5 is unlikely to be revealed before 2012. But, there is little doubt with the Apple's plan of producing 25 million iPhones units by the end of 2011, that the release of iPhone 5 is round the corner.

In addition, recently Taiwan-based notebook-maker Pegatron Technology received an order for 15 million iPhone 5 units from Apple with a September shipment date. Hence, it is known that Apple is trying hard to face the competition from Google Inc.'s Android.

Speculation about possible upgrades coming the iPhone 5 way have escalated. It is reported that iPhone 5 will feature an 8MP dual-LED flash camera with 1080p video playback and panoramic photo capture, A5 processor, edge-to-edge display, 3.7-inch curved glass screen, tear-drop design, thinner casing and a SIM-less design.

It is also expected that iPhone 5 will be running on iOS 5 which is the newest version of the OS versions. The new iOS 5 is expected come with 200 new features which will include Improved Notifications System, News Stand and iMessage.

The new Apple iPhone 5 is expected to have a bigger edge-to-edge 3.7 to 4-inch curved glass screen, and is rumored to sport a 1.2 to 1.5 GHz dual-core A5 processor, which powers the iPad 2, with probably a 1GB RAM. It is expected that iPhone 5 will have 16/32/64 GB internal storage.

In addition, Apple has filed a patent application related to 3D picture taking to the US Patent and Trademark Office later in March, according to an AppleInsider report. The filing described a system that would be capable of capturing, processing and rendering 3D images with the additional dual-camera hardware.

For the uninitiated, Apple has obviously passed up what would have been a normal release date for iPhone 5. Instead of unveiling the iPhone 5 at the Worldwide Developers Conference in June, Apple gave a sneak peek into the possible software upgradations of the next iPhone when it unveiled the iOS 5. Apple said the iOS 5 would be ready for rollout in the Fall.

Deutsche Bank analyst Chris Whitmore kicked up a storm by predicting that Apple will launch a cheaper iPhone 4S in September, while Keith Bachman of BMO Capital Markets says the new iPhone 5 will launch in mid-2012.

Whole lots of theories about how a cheaper iPhone will fit into Apple's global strategy and its quest to lead the global smartphone market emerged following this report. RBC Capital analyst Mike Abramsky said he thought the "baby" iPhone, the cheaper version for the emerging markets will not be launched until 2012.

"We continue to expect Apple to launch a smaller, prepay iPhone – but more likely in 201... [ Read More (0.3k in body) ]