Sources said that the new iPhone will have an A7 chip which will be faster than the current A6 model.
According to the Daily Express, Apple is also testing 64-bit processors which would enable the phone to process better graphics at a smoother level.
Analysts believe that the same chip or a more advanced one is likely to feature in Apple's next generation of iPad tablet computers.
Technology reporter Morris has previously said that Apple was also considering using a dedicated chip for motion tracking.
The latest version of the iPhone as well as a rumoured cheaper plastic version is expected to be unveiled at the company's September 10 event.
--ANI (Posted on 27-08-2013)