Internet is abuzz with rumours that Apple is preparing to upgrade its media player iPod Touch, and to introduce a new iPhone in September that will come equipped with a stronger processor and a more advanced camera.

According to emerging reports, an upgrade is on the way for Apple’s iPod Touch, and that could mean that the Cupertino, Calif.-based gadget maker’s new mobile operating system iOS 5 running on it.

For the next iPhone, reports suggest that the smartphone will have the A5 processor, which will process data faster than the iPhone 4’s 1 GHz A4 processor. The A5 processor can already be seen in Apple’s iPad 2.

The potential smartphone is also rumoured to have an 8-megapixel camera, better than the iPhone 4’s 5-megapixel camera.

The faster A5 processor and the 8-megapixel camera will allow it to maintain its dominance in the smartphone market by alluring customers away from Android-powered handsets.

Apple introduces the upgraded versions of its devices annually, usually in the summer. But, this year it broke its tradition by not launching a new iPhone this summer