The new smartphone will have a faster processor but will look largely similar to the current iPhone 4, one of the people said. They declined to be identified because the plans were not yet public.
The companies would begin production either in July or August before shipping components to Hon Hai Precision Industry Co Ltd, flagship of Foxconn Technology Group, for assembly, they said.
The next-generation iPhone is rumored to include the dual-core A5 processor and graphics enhancements found in the iPad 2, possibly 64 GB of storage, a larger screen, a metal back, and new cloud-based functionality through Appleâ€™s upcoming iOS 5. We will most likely learn Appleâ€™s thinking behind their fifth-generation handset at the upcoming World Wide Developers Conference (WWDC) in early June. This is the event where Apple is promising the introduction of iOS 5.