We reported this morning that Apple has now begun internally seeding a prototype next-gen iPhone with the A5X chip that debuted in the new iPad and 1GB of RAM. Based on his recent trips to China and Taiwan, Topeka Capital Market analyst Brian White, who has Apple’s price target at $1,001 as of this morning, shared some new details of what he described as “the buzz around the new iPhone 5.” According to White (via Barron’s), he expects a “sleek” new iPhone to launch in the December quarter. He also expects the device to sport a new 4-inch display and include 4G LTE capabilities.

White set his price target based on an expected August or September unveiling of the product. He also claimed the launch “could be extraordinary” by dwarfing previous launches and driving the stock closer to our $1,001 price target.” According to the report, Apple is expected to start component production for the “iPhone 5” in June.

White also claimed sales of the new iPad could have been higher if not for a production issue with panel makers related to the new Retina display. Last month, Apple announced its “strongest iPad launch yet” with sales of three million new iPads on its debut weekend…

During our meetings, we walked away with the impression that production of Apple’s (AAPL, $633.68, Buy) new iPad would have been higher during the March quarter if not for yield issues at panel makers driven by the new retina display that created a bottleneck in the supply chain. However, we believe the issue has largely been resolved and this should have an incrementally positive impact on the June quarter.

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