Our sources say the new model (or at least one of the new designs in testing) looks "more like the iPod touch than the iPhone 4." The phone will be thinner than the iPhone 4, and may have a "teardrop" shape which goes from thick to thin (something along the lines of the MacBook Air profile).
Topolsky notes that the home button is enlarged and doing double duty as a gesture area. The screen is also enlarged and occupies most of the device, meaning almost no bezel.
Our source says the company is doing very "interesting things" with bonded glass technology, and has been exploring designs where the earpiece and sensors are somehow behind the screen itself, making for a device where the display is actually edge-to-edge.
It's estimated that the screen will be 3.7-inches and keep the current resolution giving it a pixel density of 312ppi, 13ppi lower than the current iPhone 4. This density would still qualify as a Retina Display.
A sketch their source provided shows some form of inductive or touch charging.
Our sources cant confirm whether or not Apples working on its own version of cable-free juicing. Theres also a "swipe area" shown in the drawing which appears to be on the bottom and / or top of the device that could very well be an NFC point, but thats pure speculation on our part.
Apple is not expected to unveil the iPhone 5 until their fall. Topolsky expects the phone to be a global device which runs on a Qualcomm chip.