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iPhone 5 Release Date: Phone Could Sport Better Camera, More Durable Back

Rumors are swirling about what Apple will do with its next smartphone creation, the iPhone 5.

A source in the industry, who worked for approximately two weeks on a prototype, told Business Insider the iPhone 5 might feature a bigger 4-inch touch screen and a 10-megapixel camera.

The phone will also sport aluminum backing to make the phone more durable. An aesthetic change might be coming to the, as Apple might use "liquid metal" technology allowing them to manufacture the phone in a wide variety of colors.

The source also said the phone could have a more colorful screen, a skinnier build and a faster operating system.

Reports said Apple and LG are currently working together on the new screen.

"Next year's iPhone to feature a 4-inch display by LG Display, half an inch larger than the 3.5-inch display and retina display resolution will remain unchanged because LCD is currently being regarded as the right solution to offer value with better cost-cuts," said the Korean Times.

Earlier this week, Apple released a patent indicating it could be adding new features to its iPods as well. One of the new features will be a small speaker dome to the clip of the iPod shuffle or iPod nano.

The speaker could be a "natural evolutionary step for their media players," according to the patent.

NPD analyst Ross Rubin said the speaker combined with the iPod nano's integration of Nike+ exercise software makes Apple more competitive with retailers in the fitness market.

The new iPod nano can be put around a wrist, and can show messages received on an iPad that is nestled away in a bag, according to Rubin.

He also said consumers can activate Siri requests through the small screen on their wrist and have answers sent through the speaker.

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