Rumors are not created one early morning for a product of Apple. There are real reason for those. Initial start with the release of iPhone 4 , as the next version is iPhone 4S. But it didnt reach anywhere . Every one who attended Apple's 2011 Worldwide Developers Conference was really upset when they heard that from Steve Jobs that Apple's 2011 Worldwide Developers Conference was going to discuss only on Software and not any hardware and they discussed about iOS5 on June 6th.
An anonymous Apple source told the "Boy Genius Report that both the iPad 2 and the next-generation iPhone would lose their home buttons in favor of gesture-based commands that would be part of iOS 4.3. " This was actually the start of the rumor , I believe.
Then comes the post from iDealsChina a relealler who posts a photo of an iPhone 5 front bezel. As it looks like the iPhone4 , it makes people to believe that this part may be the digitizer panel for the fifth generation iPhone’s touch screen . But smartly they didnt specify any measurements , but this could be approximately 4 inch and this is similar to the details from Apple’s production lines in Asia. Mean while apple informed that , the new version will be a completely redesigned with slightly larger screen for compete to google Android phones.
Now comes the Processor part , Ming-Chi Kuo , an Analyst from Concord Securities predicts that the device will get an A5 processor and a much-improved 8-megapixel rear camera and that it will be released in October or November. As per him , this processor can match up with iPad2 , and he also mentions that Apple may switch to Qualcomm baseband for both GSM and CDMA models, along with an improved antenna design.