According to AppleInsider, Kuo has heard that the iPhone 5 will include the faster A5 processor already found in the iPad 2, as well as a higher resolution 8 megapixel rear camera. He has also been told that Apple will switch to a Qualcomm baseband for both GSM and CDMA models, along with an improved antenna design.
Kuo has heard that the iPhone 5 will begin trial production in August and mass production in September.
As for the iPhone 6, Kuo has heard that Apple is planning a new design with greatly improved hardware specifications. His sources say that this device could go on sale in the first half of 2012 due to "fierce competition" with Android.