9 to 5 Mac have reported that Apple seeded select gaming developers with iPhone 4 devices featuring the new A5 dual-core processor. That processor can be found in the iPad 2. The graphics performance of the A5 processor is said to be as much as 9 times faster than its predecessor.
It is strongly believed that this prototype device has been handed over to select gaming developers by Apple in order to test the performance of A5 chip.
iPhone 5 is rumored to be annoucned in September and is said to go into mass production in July or August.
If all these rumors turn out to be true then in September we could have an iPhone 4 like device, that will be running iOS 5 and will sport an A5 Dual Core chip and 8-Megapixel camera.