All eyes on the iPhone 5

Reports suggest Apple will reveal the next-generation iPhone at an event scheduled for 12 September.

While the date has not been confirmed by Apple, iMore was the first to report that a launch event has been scheduled for that date, citing sources “who have proven accurate in the past”.

AllThingsD also says its sources indicate Apple is planning an event for the week of 9 September. “And while we haven't yet confirmed the event's focus, history suggests it will indeed be the new iPhone,” says the report, adding that it is certain Apple is ramping up for a big product launch, or multiple launches.

Apple's prepayment for inventory components rose $1.15 billion sequentially in the last quarter, according to the company's latest filing. Wells Fargo Securities analyst Maynard Um says: “Historically, such increases have been followed by a solid ramp-up in revenue in the following two to three quarters. In our view, an increase in inventory component prepayment may suggest that Apple is securing supply for potential new product launches.” Um has also predicted the iPhone 5 will be “the biggest product launch in consumer electronics' history”.

While it will remain to be seen just how big the product launch will be, there is no doubt as to the importance of the release for Apple. Last week, Apple's third quarter results failed to meet expectations and it was noted that the iPhone poses a major risk factor for the company, as it accounts for about half of its annual revenue.

Apple CEO Tim Cook attributed disappointing iPhone sales in the last quarter, in part, to the impact of the European financial crisis. "We are certainly seeing a slowdown in business in that area. Fortunately, in the US and China, although I realise it's getting a lot of press, we're not seeing anything there that we would classify as an obvious economic issue."

The iMore report goes so far as to claim the much-rumoured iPad Mini will be announced at the same September event, together with a new iPod Touch. Commentators are still split as to the likelihood of a smaller iPad. While some say Apple needs an iPad Mini to meet the new challenge posed by the likes of Google's Nexus 7 and the Kindle Fire, others say such retaliatory products go against Apple's strategy entirely.

While Apple has a history of going to great lengths to keep details surrounding its product releases secret, it has been noted that the company's product line-up has become more predictable as consumers have a heightened awareness of Apple's product life cycles.

According to Apple's latest results, iPhone sales dropped 26% in the last quarter - largely attributed to the fact that consumers are now anticipating a newer model to be released in the coming months.

Morningstar analyst Michael Holt says of the iPhone: "When you become so reliant on a single device then that device's life cycle is going to have a much bigger impact on the results."

In the face of strong competition from the latest offering from Samsung, in the form of the S3, consumers will no doubt be disappointed if the next-generation iPhone is another incremental upgrade and fails to offer anything new. The S3 has already reportedly notched up sales of over 10 million units in its first two months since launch. Analysts estimate Samsung, which now controls more than a third of the global smartphone market, will sell 15 million to 20 million of its Galaxy S3 in the September quarter.

Expectations surrounding the iPhone 5 are again very high. Last year's release of the iPhone 4S was initially considered to be a great disappointment by analysts who expected a complete redesign rather than incremental update. The 4S, however, still managed to break all previous iPhone sales records, with four million units sold in the first weekend alone.

With the hype growing, a number of photographs have been circulating on the Web, all purporting to be the first images of the iPhone 5. While the reliability of the images cannot be confirmed, it hasn't stopped some commentators from already being disappointed. The latest images show a device that has essentially the same design as the iPhone 4S - which itself looks the same as the original iPhone 4.

This week, Apple suffered a rare miss with its latest Mac advertising campaign, which has been poorly received. Even Apple's former advertising consultant, Ken Segall, has expressed his own disbelief at the standard of the new campaign.

“Apple has had a low point or two in its advertising past - but its low points are usually higher than most advertisers' high points. This is different. These ads are causing a widespread gagging response, and deservedly so. I honestly can't remember a single Apple campaign that's been received so poorly,” says Segall.