More significant is the graphics boost, which falls in line with Apple's goal of improving the video capabilities on its devices, said Jack Gold, principal analyst at J. Gold Associates. "If you're trying to do heavy media-intensive apps, it does matter," he said.

If it is introduced, an iPhone with the A5 chip won't be the first dual-core smartphone. , which has a talk time of up to nine hours, runs on a dual-core ARM processor. LG's Optimus 2X, which is available for pre-order and due later this month, also uses a dual-core ARM chip.

Brookwood said the A5 could be a step forward in Apple's efforts to bridge the gap between tablets and Macbooks. Like Motorola's Atrix smartphone, the next iPhone could be plugged into a dock with a screen and a keyboard to give it laptop-like functionality.

The A5 could ultimately make its way to as well, analysts said. Apple doesn't have a big share of the TV market, but a chip like A5 could be a differentiator if it supports full high-definition video. The existing Apple TV device, which uses the A4 chip, plays video at only 720p resolution.

Apple shipped nearly 50 million products in 2010 based on its A4 processor, including the iPad, iPhone and Apple TV, according to research firm IHS iSuppli.