According to @chronic from the Chronic Dev Team, iOS 4.3 reveals that the new iPhone 5 will have the same A5 dual-core processor the new iPad 2 is sporting. References to a device with the model number N94AP were found deep inside the code, and supposedly this is the identifier for the new iPhone 5. A prying look into the kernel shows the model number S5L8940, which is the same label as the iPad 2′s A5 processor.
This is certainly exciting news for the future iPhone, but also serves to bring up more questions. Will the iPhone 5 finally get a physical upgrade? Maybe a bigger screen, or a different housing? I guess we’ll have to wait until April to find out.