The report also mentions the term iPhone 4S, which has also been applied to Apple's next generation iPhone.
It's been rumored that the device would be a) only slightly modified with internal upgrades, similar to the iPhone 3G to iPhone 3GS upgrade, and would be called an iPhone 4S, or b) one radically different and dubbed the iPhone 5. DigiTimes report indicates that the former is the case, no major changes.
Still, with these competing rumors, the only thing that is 100 percent certain is that the next-generation iPhone won't ship until iOS 5 is ready.
Some sources have said that Apple would release two versions of the iPhone 5, one of them radically changed, and the other cheaper, smaller, and sold pre-paid for $350.
In addition, an earlier DigiTimes report said that Apple would announce both an iPhone 5 and iPad 3 in September, shipping in October.