The report published on Monday claimed that iPhone model 3,2 is currently in its field-testing stage, while the next-generation of iPhone (iPhone 5?) has advanced to the ‘Engineering Verification Test’ stage of the development cycle.

From the BGR report:

“We have been told that iPhone model 3,2 — what everyone is assuming to be the Verizon (or at least CDMA-compatible) phone — just hit the “AP” testing stage. This is the very last stage before retail release; final hardware, almost final software.”

The number ‘3,2’ is a device identifier used by Apple to identify many of its devices, including the iPhone. The first digit refers to major revisions, and the second to minor revisions, therefore, the 3,2 device should refer to a revised iPhone 4 and not a next-gen version of the device.

BGR’s source claims that the iPhone 3,2 version will contain a SIM card slot, which is generally only used by a GSM device. Rumors surrounding a Verizon CDMA iPhone however, say that chip provider Qualcomm could supply Apple with a dual-mode baseband chip that would support both GSM and CDMA networks.

India currently has more than 670 million wireless users and GSM is certainly the preferred technology, however 20% of the total users still use CDMA phones. Bharti Airtel Ltd. and Vodafone Essar Ltd. currently offer the iPhone 3GS in India and will be launching iPhone 4 later this month.

According to the report published on WSJ “Apple is in talks with Reliance Communications Ltd. and Tata Teleservices Ltd., whose networks run on CDMA technology. The discussions come amid news that Apple is making a CDMA version of its iPhone that Verizon Wireless will sell early next year in the U.S.”

Sources familiar with this matter have said:

“Tata has been in talks with them [Apple] for four to five months now,”

Apple’s iPhone wasn’t able to capture significant market share in India as it accounted for less than 1% of the smartphone market share in the first half of 2010, said Mr. Chiam, senior analyst at research firm Canalys, while on the other hand Nokia shipped 1.8 million smartphones which accounted for 71% of the market.

The telecom industry in India is witnessing major growth as 3G services will be rolled out by major networks in the first week of November. It will be interesting to see if Apple decides to offer CDMA version of iPhone in India and if that will help in improving the sales.

What is also not that surprising, but may initially catch you off guard, is that Apple probably won’t even have 4G for the iPhone 5. Instead opting for a similar dual mode setup, and a mature 3G chipset.

If you remember that Apple chose very specifically to stick with 2.5G when 3G was already a widespread network standard, then this should really be no surprise to you. The iPhone 5 is already a reality, and being tested as I write this. So any phone chipset it uses will need to be at least in some kind of limited manufacture now, and be viable for mass production imminently.

4G chipsets at the moment are expensive and power hungry. The standards are not even set in stone yet. And telecoms companies are notoriously optimistic about both their current coverage, and coverage and services they will supply in the future.

Whereas Apple are known to prefer tried and tested technology, that is mature, cheap and light on power, for their devices.

Whenever Apple decides to refine existing technology they produce superior products. If you compare the relatively old technology of Apple’s current Retina Display to that of OLED displays on some Android devices then you have a good example. Despite being based on more mature technology, the Retina Display is still hands down the best mobile device display to date.

So if you are holding your breath for a 4G iPhone you might want to reconsider. You are certainly more likely to see a White iPhone before you see a 4G one.

Do you think no 4G in the near future is a deal killer for you? Or do you think Apple’s strategy is the wiser path? Have your say in the comments…