Apple is reportedly circulating and testing a faster iPhone with 1GB of RAM at its headquarters in Cupertino, California. We’re not surprised by this news, since we expect the company to be prepping the iPhone 5 for release later this year. In any case, 9to5Mac has learned that Apple has already seeded a prototype of the new iPhone that’s still using the iPhone 4 design — but fear not, the company is only doing this to avoid potential leaks related to the phone’s new design. The prototype, called N96 internally, allegedly packs a variation of the A5X chip, which is currently used in Apple’s latest generation iPad. 9to5Mac also discovered a file inside of an internal iOS 5.1 build that suggest Apple is working to build a brand new iPod touch. Unfortunately, there isn’t any information on what the new iPod touch will offer, although 9to5Mac suggests it’s possible Apple will bump the popular media and gaming device to a faster processor.