A new report from Bloomberg says Apple is planning on introducing its next generation iPhone in September of this year with a faster processor and more advanced camera. 

The device will include the A5 processor, the more powerful chip that Apple added to the iPad 2 earlier this year, along with an 8-megapixel camera, up from the 5-megapixel model in the iPhone 4, said the people, who asked not to be identified because the details aren’t public. 

According to the report, Apple will introduce a new iPhone in September that has two main features, a faster A5 processor and an eight-megapixel camera. 

Bloomberg also notes that the new device will run iOS 5, obviously, which is codenamed "Telluride."

The idea of the next generation iPhone with an A5 processor and eight-megapixel camera is not new and has been talked about for months.

The report also mentions that Apple is currently testing a new version of the iPad with a higher resolution display and more sensative touchscreen.

The screen resolution on Apple’s new iPad would be about one-third higher than that of the iPad 2 and will boast a more responsive touchscreen, one of the people said.

There is no indication on when a next generation iPad will be released.