iPhone 5 Is Both Tablet and Smartphone with 4-inch Screen - Report

Citing upstream component suppliers, Taiwanese industry publication DigiTimes claims to have learned that Apple will have its iPhone 5 equipped with a 4-inch display to better compete with the Google Android platform in the 4- to 7-inch smartphone / tablet market.

These component suppliers reportedly said that Apple’s next-generation iPhone is already in production.

Apple was keen to expand the screen size to 4-inches (from the current 3.5-inches) to take on two markets with one device.

Apple has a 9.7-inch tablet - the iPad - and has shown little interest in developing a smaller, 7-inch unit, despite reports saying one such tablet was in the works.

In fact, some leaks have indicated that Apple’s second-generation iPad will boast the same screen size as its predecessor.

The iPad 2 will also add cameras, more RAM, and more software-based benefits, rumors indicate.

A separate report by DigiTimes notes that Apple is also hoping to outsource the production of its A4 processor and a potential next-generation A5 processor to Taiwan Semiconductor Manufacturing Company.

The latter is likely to utilize the ARM Cortex A9 design.

Apple's current A4 processor found in iPhones, iPod touches, iPads, as well as the Apple TV is exclusively produced by Samsung Electronics.

Apple is known to have tapped TSMC in the past to help produce the A4 chip when Samsung was unable to meet demand, AppleInsider informs.

It cites the DigiTimes report as saying that "the move at that time was perhaps to test TSMC's capability."

For its part, Digitimes cites Digitimes Research as saying that “the iPad 2 will support an enhanced version of the A4 and the A5 will power the iPhone 5. TSMC will initially produce the improved A4, and could likely become the exclusive manufacturer of the A5."