According to a source cited by 9 to 5 Mac, a variation of the new iPad‘s A5X chipset is internally tested at Cupertino with a view to being included in the company’s next smartphone.
The tested prototype is said to be trialled in older iPhone 4S casings in order to prevent leaks.
The chip is a variation of the one existing in the new iPad as it uses altered architecture that suits a phone rather than a tablet.
Regarding the iPod touch, the site writes that a file inside of an internal iOS 5.1 build shows that Cupertino is preparing a fifth-generation iPod touch that is internally labeled iPod 5,1.
The shift from the iPod 4,1 (the current internal iPod touch label) to iPod 5,1 suggests significant upgrades in the internal hardware.
The site speculates that an upgraded version of the A5X chip in the iPod touch could help maintain the device’s position among the top mobile gaming handsets.