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iPhone 5 "closely resembles 4" - report

But has iPad 2 processor, better camera.

The iPhone 5 “closely resembles” its predecessor and will launch in September, according to a Bloomberg source.

Citing “two people familiar with the plans”, the report claimed that the next iteration of Apple's smartphone will sport a speedier A5 processor – the same chip that powers the iPad 2.

It'll also supposedly boast an eight megapixel camera – a significant jump up from the iPhone 4's five megapixel lens.

The phone will run the new iOS 5, which apparently adds improved messaging and photo-sharing features.

Bloomberg's sources also dropped a few details on the next iPad. They claim Apple is testing a new screen for its next tablet, similar to the one used for the iPhone 4. Its resolution will be about one-third higher than on the iPad 2 and will feature a more responsive touchscreen.

Apple has, of course, declined to comment.