Reuters cites three unnamed sources with “direct knowledge of the company’s supply chain” saying that Apple will start production of the iPhone 5 in July or August, with a ship date in September. The article also says that the iPhone 5 will have a faster processor, my guess is it will have Apple’s A5 dual-core processor like the iPad 2.

It seems like every week we have new information from “unnamed sources” about the iPhone 5, so things may change in a few days. But if I was to put money on it, I would say that the iPhone 5 will come out sometime this year, not next year like many people have been saying.