San Jose, Calif. — Apple Corp (NASD:AAPL) plans to release a new model of the iPhone in September that includes updated advanced features, Bloomberg reported, citing sources familiar with the company’s plans.

The new iPhone will include an 8-megapixel camera — an upgrade from the current 5-megapixal model used in the iPhone 4 — better screen resolution, a more responsive screen touch and an A5 processor chip that is currently used to power the iPad 2. Apple’s decision to include the chip in the new iPhone was simply to enable faster loading of apps and programs while offering competition to other mobile devices introduced by companies such as Google’s Android phone.

Sources close to Bloomberg claim the phone will “closely resemble” the iPhone 4, but will be more of an “iPhone 4S” or an “iPhone 4 plus” rather than a whole new device — offering upgraded features from the current ones.

While there is much speculation about when the phone will be released, sources told Bloomberg that Apple pushed back the release to September to coincide with the release of the new iOS 5 — an operating system Apple revealed to developers earlier this month.

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