A new report by DigiTimes claims that Apple will begin production of the so-called "iPhone 4S" in August. The new handset could be ready to launch "as early as September 2011."
DigiTimes' sources--"Taiwan-based supply chain makers"--also said that iPhone 4 shipments are slowing ahead of the next release.
Apple has lowered its expected shipment volume of iPhone 4 for the second quarter of 2011 from 20 million units, to 17.5-18 million units consisting of 16 million units of the 3G version and 1.5-2 million units of the CDMA version, according to Taiwan-based supply chain makers.
Feature details are scanty, though the report does mention that Apple may upgrade the rear-facing webcam to 8 megapixels and will purchase 3G and CDMA chips from Qualcomm.
As we've heard before, there are rumors that the upcoming iPhone won't be 4G-capable.
"Apple is unlikely to launch LTE-enabled iPhone 4S smartphones in 2011 as originally planned due to problems concerning yield rates of LTE chips offered by Qualcomm, according to industry sources," separate sources told DigiTimes.
Apple will reportedly hold off on an LTE version of its popular handset until 2012.
Check out our iPhone rumor guide for more speculation. Then, take a look at a our roundup of rumors about what surprises Apple might be planning for the 10th anniversary of the Apple store.