iPhone with stronger chip, camera in works

The new iPhone will have an A5 processor and an enhanced camera, sources say.

Apple Inc. plans to introduce an iPhone in September that boasts a stronger chip for processing data and a more advanced camera, according to two people familiar with the plans.

The device will include the A5 processor, the more powerful chip that Apple added to the iPad 2 earlier this year, along with an 8-megapixel camera, up from the 5-megapixel model in the iPhone 4, said the people, who asked not to be identified because the details aren’t public. Apple is also testing a new version of the iPad that has a higher resolution screen, similar to the one now used in the iPhone 4, one of the people said.