According
to 9to5Mac, Apple's gearing up for the next iPhone by handing out select handsets with the iPad's A5 processor instead of iPhone 4's A4 guts. The devices themselves (dubbed "iPhone 4S" by the site's source due to its external similarity to the Apples current-gen handset) may not be iPhone 5 hardware, but the guts—those super-speedy, graphics blasting A5 guts—are getting a test drive.
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Source: http://feeds.gawker.com/~r/gizmodo/full/~3/7dbg8duXqdU/apple-giving-supafast-a5-processor+powered-iphones-to-devs-for-test-drives
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