It's now looking more like the Apple iPhone 5 will be released in September, as subcontractors of the leading American phone manufacturer are reportedly gearing up for that time frame.

Reports from The Wall Street Journal and yahoo.com said Apple Inc. has placed orders for "key components" in its next generation iPhone, which should launch sometime in the third quarter of 2011.

Apple Inc. has also reportedly given instruction that the new iPhone 5 as compared to the iPhone 4 will ultra lightweight and likely to be equipped with 8MP camera.

According to yahoo.com's Digital Trends, the company expects sales to beat made from iPhone 4, which recorded selling just over 18 million units last quarter.

"Apple's sales estimates of the new iPhone is quite aggressive," an anonymous Apple supplier told the WSJ. "It told us to prepare to help the company meet its goal of 25 million units by the end of the year. The initial production volume will be a few million units ... we were told to ship the components to assembler Hon Hai in August."

Digital Trends also noted that Apple may discontinue the use of some Samsung components due to the rift between the two companies. It is, however, switching wireless baseband chips from Infineon Technologies to Qualcomm.

Hon Hai, Apple's Taiwanese manufacturer and subcontractor, said the very minute components now being used for the new iPhone 5 had made it more difficult to manufacture.

"The touch-screen devices are so thin," said Hon Hai Chairman Terry Gou at the company's annual general meeting last month. "It's really difficult to install so many components into the iPhones and iPads. We hope to raise the yield rate and volume in the second half, which will help improve our gross margin."

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