Apple has reportedly placed orders for 10 million units of its next-generation iPhone smartphone with Taiwan-based manufacturer Pegatron Technology, with shipments expected to start in September, Digitimes reveals.

Sources have said that because profit margins on the iPhone are small in comparison to those of its larger, more expensive iPad device, Pegatron is looking to secure orders for Apple’s new iPad 3 tablet, the MacBook Air and other Apple products. The company has reportedly upped its capacity by increasing production equipment and hiring more employees.

The next iPhone will be released in the coming months and speculation has come down to two basic time frames, some time in September or early in October. One indication that the iPhone 5 may arrive sooner, rather than later, is the fact that the hardware has been delivered to carriers for testing.

The new Apple smartphone is expected to incorporate Apple’s new A5 processor, an 8-megapixel camera and a larger display.