The report also says that the completely redesigned iPhone 5 is set to be released in the summer, and that it's already being tested, in secret by senior Apple executives on Apple's campus.
According to Engadget, both devices will feature a dual GSM / CDMA chipset produced by Qualcomm, marking Apple's shift away Infineon as its chipset producer. It's not clear whether the chipset being used will be based on the company's EV-DO / HSPA Gobi variety, or an entirely new design.
Engadget say that information about the iPhone 5 is still unclear but they seem certain about the CPU and chipset for both devices.
We don't have much info on the phone at this point, but our understanding is that the new device will be a total rethink from a design standpoint and will be running atop Apple's new A5 CPU (a Cortex A9-based, multi-core chip). This device, like the iPad 2, will feature a Qualcomm chipset that does triple duty as the CDMA / GSM / UMTS baseband processor -- from what we hear there's no LTE in the mix at this point.