Apple is said to be testing a new version of its iPhone in labs already, and that the prototype phone is packing 1 GB of RAM.

According to a report from 9 to 5 Mac, Apple is actually testing two new devices: an iPhone and an iPod Touch. The iPhone is said to be packing a variation of the A5X chip that powers the new iPad and is supposed to make the new handset in­cred­ibly fast.

It’s no real surprise that Apple would put a version of the iPad’s chip into its next handset, though, as the report notes, the A5X in the tablet was built specifically to power the retina display. In the iPhone’s case, the chip is meant to boost the speed.

The report indicates that Apple is testing the new build of the iPhone inside an old case to eliminate leaks, but that the hardware of the phone is expected to see a significant makeover. Apple has stuck to a tried and true formula for the iPhone’s case for the past two models, making small tweaks but steering away from revolutionary changes. Many users would like to see a larger screen on the device, as its 3.5-inch display is quickly beginning to look small in the face of four-inch or even five-inch screens on Android devices that advertisers say work well for streaming video and gaming.

Another iPad feature that has been mentioned as a possible addition to the next iPhone is the inclusion of LTE connectivity. Meanwhile, analyst Brian White has said that the next iPhone will have a unibody case, Apple Insider reported, and the newly sleek look will fuel consumer desire for the new phone. White also expects a larger screen, in the neighborhood of four inches.

As for the iPod Touch mentioned in the 9 to 5 Mac report, that new device is supposed to also have major changes inside, likely also getting a chip with a dual-core graphics processor to power mobile gaming.

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