Engadget is reporting that highly anticipated iPhone 5 is on track for a possible summer launch this year. Device is expected to be a complete redesign as compared to the iPhone4. They are reporting that iPhone 5 will support the newer A5 (Cortex A9 based multi-core CPU). So, as a result it should be significantly faster as compared to the iPhone 4. It is said that currently it is being tested by senior Apple staff on campus. Furthermore, device will support a Qualcomm chipset that does triple duty as the CDMA / GSM / UMTS baseband processor as the iPad 2 is expected to.

In another related story iOS 4.3 hints at SGX543 GPU to be included in future Apple devices possibly in iPhone 5. In addition to the increased performance SGX543 also supports multi-core configuration to provide a further boost in performance. There are no further details available at this time about the specification or the exact launch date of the iPhone 5.
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