Digitimes reports that component makers are preparing materials to begin production of the iPhone 5 for an October release, with signs pointing to the iPad 3 dropping before the end of the year as well.

Taiwan-based companies included in the supply chain for iPhone 5 and iPad 3 have begun to prepare materials for the production of the two devices

According to their sources, production of the iPhone 5 and iPad 3 should begin in August and ramp up in September with the iPhone 5 hitting sometime in October.

Most rumors have narrowed the iPhone 5 release to September. It’s unclear what the release window for the iPad 3 would be, and it’s important to keep in mind that Digitimes has been hit-or-miss with their predictions in the past. Earlier this month they reported iPad 3 component suppliers gained Apple certification for a 2012 release, which goes against these new reports. Both Daring Fireball and TechCrunch have pointed to a “fall surprise” related to a new iPad, possibly iPad 3 earlier this year.

TiPb has independently heard that October is likely for iPhone 5, and that there could quite possibly be a new iPad, perhaps a revised iPad 2 or iPad 3, this fall as well. Regardless of the rumors, however, Apple can and will move things around based on production and marketing needs, so no one knows for certain until Apple makes the official announcements.

[Digitimes]

So while Apple is ramping up production of the iPhone 3G, it looks like the rest of the cell phone industry is in a serious slump. Kind of. According to the NPD, (via Ars Technica) only 28 million cell phones were sold this quarter representing a 13% year-to-year decline. But looking specifically at the model-by-model numbers, it looks like everyone is enjoying success on Motorola’s dime.

“Quarterly unit-sales of handsets fell to their lowest level, since NPD begin tracking the category in 2005,” NPD director of industry analysis Ross Rubin said in a statement. “Even so, most major manufacturers picked up market share that was lost by Motorola.”

In related news, MobileSafari has been on an absolute tear since the release of the iPhone 3G. According to Analysts, (via MacDailyNews) MobileSafari has nearly doubled its market share to 0.31% since the launch. Doing rudimentary math, having more handsets on the market that are twice as fast as the old one, well, I guess it adds up.

And to top it all off, our friends at Engadget have created an iPhone specific web page. Why, you ask? Because in 2008, the iPhone/iPod Touch Family has accounted for nearly 96% of all mobile views on their full Engadget site. That’s just jaw dropping.

So that’s the state of the industry. Surprised that the iPhone 3G has had such an effect on the numbers? What’s to come?