Aug 13, 2010 12:35 GMT  ·  By

A tech-focused web site claims to have gained knowledge of an upcoming iPhone 5 scheduled to go on sale in January on Verizon’s network, with an enhanced (1.2 GHz) processor, an internal antenna, as well as an improved encasing.

Many will have trouble believing this rumor, although Dvice claims its source has actually “handled” prototypes of the alleged Verizon iPhone.

One of the key features is the internal antenna, a change in design that would supposedly diminish Apple’s chances of getting tarnished again for reception issues.

Yet Apple has touted the iPhone 4 outer antenna as the most advanced to date. The company is likely to try and build on top of it, rather than scrub it as a feature inside its iPhone.

To Dvice, an internal antenna means no more death grip problems, and a different enclosure. However, Apple relies heavily on design, making it highly unlikely for the company to change the looks of its iPhone just yet.

The site goes to speculate that Apple’s recent agreement with Liquidmetal may materialize in a new shell for its upcoming smartphone.

Furthermore, the device will allegedly employ a bigger Retina Display - 3.7 inches. The current spec is 3.5-inch.

Finally, a faster processor is in the books for iPhone 5, the source said, mentioning 1.2 GHz as the clock speed, although no name was provided for the chip.

Apple pundit John Gruber expects Apple to launch the CDMA-capable phone at a special event, according to a recent post on his blog.

Gruber doubts Apple will be able to fulfill demand, since the electronics vendor is already struggling to ship enough units of the current iPhone 4, yet the information he’s been receiving seems to corroborate rumors of a January release for the CDMA iPhone 4, through Verizon.

The well-informed blogger said that the wheels were turning on this next iPhone, which hasn’t yet reached DVT status (device verification test). It is, however, at EVT (engineering verification test), “a few birdies” allegedly told the pundit.