Chinese networking site Weibo posted a photo showing the Apple A5 system-on-a-chip (SoC) used in the iPad 2 nestled into what appears to be a next generation iPhone logic board. The logic board is connected to a white iPhone 4-like front cover with a speaker mesh that looks slightly larger than that of the official white iPhone 4.
The image also shows a slightly larger battery running at 1430mAH compared to the current iPhone 4 battery running at 1420mAH despite both batteries carrying the same model number.