iPhoneThe next version of the iPhone, dubbed by most to be the “iPhone 5,” will carry Apple’s A5 processor and sport an 8-megapixel camera, according to a report by Bloomberg News.

Two people familiar with the device’s plans told Bloomberg reporters that the phone would come out sometime in September, which is in line with most reports that Apple would release the device sometime this fall. The sources also said Apple is working on another version of the iPad that will feature a high-resolution screen like the one seen on the iPhone 4.

That phone is considered to have one of the best displays across mobile devices thanks to Apple’s “retina display” technology, which runs at 640 pixels by 960 pixels for the 3.5-inch device. Most modern smartphones run a display with a resolution of around 480 pixels by 800 pixels. The iPad 2 uses Apple’s A5 chip, a 1-gigahertz dual-core processor that is more powerful than the A4 chip featured in the iPhone 4. The A4 chip is a single-core chip that clocks in at around 800 megahertz.

Bloomberg’s sources also said the next iPhone would be similar in design to the iPhone 4, Apple’s current-generation smartphone that came out in July. There are wildly conflicting rumors about the design of the next iPhone. There were additional rumors early Tuesday that the iPhone 5  would feature a drastic redesign of the hardware of the phone. There have also been rumors that the next iPhone would only feature technical upgrades like the iPhone 3GS, and will be more like an “iPhone 4S” device.

Bloomberg’s report also indicated that the company was working on another iPhone that is cheaper and more accessible to lower-income customers. The iPhone 4 currently retails at $199 for a 16-gigabyte model and $299 for a 32-gigabyte model, and both require a contract with wireless providers AT&T and Verizon. That puts the phones out of the price range of many devices that run Google’s operating system, Android, which can cost as low as $50.

Apple currently sells an 8-gigabyte model of the iPhone 3GS, the phone manufacturer’s last generation phone, for $50 in order to hit that market point. But the phone is considered dated and it is already nearly two years old, while new Android devices come out daily that have better technical specifications than the iPhone 3GS and sport a similar price tag.