Because 2011 has gifted Apple fans a slightly improved iPhone 4S, instead of the highly anticipated iPhone 5, Apple has returned to its labs to develop the next generation iPhone. The real iPhone 5 is expected to be launched this year, and hopefully it will boast of significant hardware and software advancements than the iPhone 4S did.

According to Citigroup analysts who met with Apple CEO Tim Cook and CFO Peter Oppenheimer, Apple does not intend to lower the price of its phones. Oppenheimer reportedly suggested that Apple will continue developing “great products,” worth the extra money.

The iPhone 5 may offer both LTE and TD-SCDMA, a 3G standard used in China. The Chinese newspaper Commercial Times reported that Apple may release the new device in June, which makes sense considering that Apple’s Worldwide Developers Conference (WWDC) is scheduled for June 10 – 15.

Other rumors indicate that the new iPhone expected this summer will feature a 4-inch or larger display and it will be longer and wider than the iPhone 4 and iPhone 4S, though the shape will remain the same.

Meanwhile, Morgan Keegan analyst Tavis McCourt says the iPhone 5 will be launched in the fall, and will be a “significant revenue and earnings growth driver” for Apple. Morgan Keegan made no comments regarding how the new iPhone will differ from iPhone 4S.

Elsewhere, SlashGear and 9to5Mac reported that Apple’s inventory system contains a phone with the code name N94, believed to be the new iPhone 5. According to information on the label, the phone could be a dual-mode CDMA/GSM.

Other iPhone 5 features could include HSPA+ support, a larger 960 x 540-pixel qHD touch screen (likely 4.2 or 4.3 inches), 1GB of RAM and an advanced voice-control system based on Siri.

Lastly, rumor has it that there are two new iPhones in Apple’s retail system.