Ask Maggie: IPhone 5 rumors and IPhone-tracking woes

The summer is quickly approaching and Apple fans are asking when the new iPhone 5 will be out and what new features it will support.

Since 2007, when the first iPhone hit stores, fans of the device have come to expect a new version every year in June or July. But some reports are suggesting that the device may be delayed until the fall. In this week's Ask Maggie, I look at some of the recent rumors surrounding the iPhone 5 to help readers plan and plot their purchasing strategies for the latest iPhone.

I also offer my perspective on how concerned smartphone users should be on the recent news that Apple iPhones and iPads have been tracking users' locations. And finally, I answer another reader's question about when Verizon will offer tiered pricing for its mobile data service.
Ask Maggie is a weekly advice column that answers readers' wireless and broadband questions. If you've got a question, please send me an e-mail at maggie dot reardon at cbs dot com. And please put "Ask Maggie" in the subject header.



Round-up of rumors


Six months ago, the No. 1 question I used to hear from readers, friends and family was: When will the iPhone be on Verizon? Now, the No. 1 question I hear is: When will the iPhone 5 be available?
I don't have any special relationship to Apple execs, Steve Jobs or Tim Cook, but the rumor mill has been working overtime lately. Instead of selecting an individual question to answer on the subject this week, I thought it might useful to just provide a summary of what rumors are out there in an effort to help consumers figure out what to do.

For months, sources in the component industry have indicated that the launch of the new iPhone 5 wouldn't happen during Apple's usual time frame of summer, but a little later in the year. This week Reuters cited sources in Hong Kong who said that the iPhone 5 is expected to go into production in July. This means the device would likely ship in the U.S. around the beginning of September.

This rumor contradicts a different rumor reported by AppleInsider earlier this month that indicated that suppliers in South East Asia didn't expect production of iPhone 5 to begin until September, which would push back the release of the iPhone 5 until October.
What's the hold-up? According to various reports, Apple seems to be taking its time assembling new components for the iPhone 5. The company may replace the hardened glass on the back of the device with a metal backing. There was also a report from Digitimes that said since the iPhone 4 is still selling so well, the company is still producing panels for that device. The thinking here is that Apple may not be in a hurry to roll out a new product.

Now that we have a rough guesstimate of when the new iPhone 5 might be on the market, what's different about this iPhone than the previous one?

Most reports suggest that the new iPhone 5 will look a lot like the current iPhone 4. But there will be some hardware and software differences. For example, many people expect the iPhone 5 to have a faster processor, the A5, which will offer similar performance the iPad 2. As I mentioned earlier, there is talk of a new metal back that would replace the hardened glass backing on the current iPhone.

And there's been a lot of talk about the device's screen. Many people believe the new iPhone 5's screen will be bigger. Instead of the 3.5-inch screen on the iPhone 4, the device may have a 4-inch "edge-to-edge" screen. The home button would likely be eliminated with the functionality built into a button possibly on the side of the device. The new iPhone 5 is also expected to have a new and improved 8-megapixel rear camera.
Back in February, a Taiwanese blog, Apple.pro, reported that it had hands on information pointing to three different models being considered for final production of the iPhone 5. One has a physical keyboard that slides out, and another is said to be like an iPhone 4 in styling but with a longer-lasting battery and a better camera.

What's likely to be missing from the iPhone 5?
There had been speculation that the iPhone would include technology called near field communications, or NFC, that would enable the iPhone to act like a credit card for payments. The New York Times said in March that it had confirmed that Apple has indeed been working on the feature, though how soon it may debut is still up for speculation. The Independent also reported in March that Apple does not plan to include a Near Field Communication (NFC) chip in the next version of the iPhone. According to the Independent, Apple is working on its own system because the current standards are too fragmented. And it doesn't expect the functionality to be available until 2012.

The iPhone 5 also won't likely include support for 4G LTE wireless service. Cook, Apple's chief operating officer, hinted on the company's quarterly conference call earlier this week that 4G LTE chips aren't ready for prime time. He said that this "first generation of LTE chipsets force a lot of design compromises" that would likely require a higher level of integration.

This wouldn't surprise me given that Apple typically lags at least a year behind in terms of components used in many of its products. If you'll recall, the first iPhone in 2007 supported a 2.5G mobile network, even though there were already several phones on the market at that time supporting 3G.
This news may disappoint some Verizon Wireless customers, since Verizon is the only major U.S. carrier with an 4G LTE network that has launched. But Verizon subscribers can look forward to the fact that the iPhone 5 on Verizon will be a "world phone." Verizon CFO Fran Shammo confirmed during the company's quarterly conference call that the next iPhone sold on Verizon's network would be able to be used overseas.
Apple hasn't commented.

Of course, most of what I've said here is still speculation. Apple hasn't confirmed any of this information. And it's difficult to say for certain when the iPhone 5 will launch until Apple has announced it. But one thing is certain. Apple will probably sell a lot of iPhone 5 devices.

Apple reported earlier this week that during the first quarter of this year, Apple sold a whopping 18.65 million iPhones. That's an increase of 113 percent over what it sold during the same quarter a year ago.