They cite two people "familiar with the plans" who indicate that the new iPhone will carry a faster processor and more advanced camera:
Bloomberg's sources also report that Apple is testing a version of the iPad that has a "higher resolution screen, similar to the one now used in the iPhone 4". From here, Bloomberg references older rumors that Apple might be working on a cheaper iPhone aimed at attracting customers in developing countries. They seem to believe that work is continuing on this low-end iPhone.
Finally, they report that the resolution of the new iPad would be "about one-third higher" than the iPad 2. Such a small increase would be a surprise as Apple's method for increasing resolution on the iPhone was to double each dimension to offer simple scaling for apps. It's been expected that Apple might adopt the same technique in the iPad 3, though technical hurdles may exist for such high resolution displays.
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