Increasing number of reports from varied sources suggest that the production of next iPhone has already begun. Pegatron is leading the task of assembling the iPhone 5 in Shanghai, with the fabled smartphone scheduled for a fall release.

Citing unnamed industry sources in Taiwan, Digitimes reported on Monday that Pegatron has started production of Apple's upcoming smartphone at its Shanghai factory in China.

This report follows similar reports last week that the iPhone 5 is in production stage. However, DigiTimes didn't name any manufacturer in the report, but provided some details about the next iPhone.

According to the Macotakara, the iPhone 5 production model has a new backplate composed of both aluminum and glass. Earlier reports also suggest a change in the iPhone 5 backplate reporting that it is made up of aluminum with glassy material at both ends.

Every time a new iPhone debuts, it packs features and upgraded hardware in it. The next generation iPhone is rumored to boast a larger display (possibly 4-inch), 1GB RAM, 16/32/64GB storage, 4G LTE connectivity, Near Field Communication or NFC technology, iOS 6, and updated camera modules.

As far as the release date is concerned, most reports indicate a fall debut. Recently, Verizon CFO Fran Shammo dropped hints about the fall debut of the next iPhone during company's quarterly conference call by referring to a major phone the carrier expects to launch in Q4. Shammo indirectly confirmed that October release date for iPhone 5.

Apple faces no problems in selling iPhones, even without the debut of a new one. Verizon revealed that it sold 2.7 million iPhones in the period with iPhone 4S being its best seller, followed by a discounted iPhone 4. Android smartphones bearing the Droid label - Motorola Droid Razr, Razr Maxx, and HTC's Droid Incredible account to 2.9 million sales.

The carrier sold a total of 5.9 million smartphones in the quarter, out of which 3.2 million were 4G LTE enabled devices.

In keeping with the floating rumors, as the iPhone 5 readies for a fall debut, it will be interesting to see how the smartphone market shapes up post its launch.