As competition with the ultra-fast Android phone revs up, Apple is set to launch a new, faster iPhone this fall and is testing a new version of the iPad, according to media reports.

Apple plans to launch a new iPhone with a faster chip for data processing and a more advanced camera in September, according to a Bloomberg report that was released late Tuesday.

“The device will include the A5 processor, the more powerful chip that Apple added to the iPad 2 earlier this year, along with an 8-megapixel camera, up from the 5-megapixel model in the iPhone 4, said the sources, who asked not to be identified because the details aren’t public. Apple is also testing a new version of the iPad that has a higher resolution screen, similar to the one now used in the iPhone 4,” according to Bloomberg.

Apple is also reportedly testing a new version of the iPad that has a higher resolution screen, Bloomberg said. The new iPhone will closely resemble the iPhone 4, Apple sources said in the report.

The iPhone maker trails Google in the smartphone market; researcher IDC predicts that by 2015, Microsoft's mobile operating system will have achieved greater market share than Apple’s, reaching almost 1 billion units by the end of 2015.

IDC’s report released earlier this month also indicates that Google's Android smartphone operating system, which edged Nokia's Symbian out of its leading position toward the end of 2010, was expected to increase by more than 40 percent of the market in the second half of 2011, TechZone360 reported.

Yet a recent study of smartphone owners said the iPhone has the most brand loyalty, with Android not far behind.  

Apple shares fell to $323.85 in trading before the bell on Wednesday, Reuters reported. They closed at $325.30 Tuesday on Nasdaq.

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Erin Harrison is Executive Editor, Strategic Initiatives, for TMC, where she oversees the company's strategic editorial initiatives, including the launch of several new print and online initiatives. She plays an active role in the print publications and TechZone360, covering IP communications, information technology and other related topics. To read more of Erin's articles, please visit her columnist page.

Edited by Jennifer Russell