According to Bloomberg, which has decided to enter into the iPhone 5 rumor mill, the next iPhone will feature a more powerful chip and a more advanced camera. Their report of the iPhone 5 including the A5 chip corroborates what is largely expected – it is the chip that is currently included in the iPad 2.

The report also claims that the “more advanced camera” will feature an 8-megapixel sensor, something that Sony’s Howard Stringer had said earlier this year. It’s an increase from what is currently used in the iPhone 4, which is a 5-megapixel camera. Similarly there have been previous reports have an 8-megapixel camera throughout this year.

The next iPhone will, according to this Bloomberg report, be similar in design to the current iPhone 4. It comes after yesterdays report from BGR which backed up an article from This is my next earlier this year which claimed the iPhone 5 would feature an all new design.

Bloomberg’s sources, not identified, also claim that Apple is trialling a new iPad that includes a higher resolution display – one that would be similar to the Retina display in the iPhone 4. Apparently the display will have roughly one-third more resolution than the current iPad and also have increased touch responsiveness.

The report ends with a somewhat bizarre suggestion that Apple is “working to finish a cheaper version of the iPhone” that would be targeted to developing countries. Bloomberg says that it would use similar chips to what is included in the current iPhone 4 but would be smaller in size.

[Via Bloomberg]