Kumar wrote that he expects that we'll be seeing the dual-core 1GHz ARM Cortex A9 chip by March, with a similar upgrade for the iPhone 5 later in the year.
It is suggested that the move to dual-core processors will be necessary for the device to maintain its performance in light of increasing smartphones and tablets coming onto the market with ever increasing performance leads. The performance boost will also make it easier for Apple to deploy multimedia adverts inside its applications - a key requirement for its own iAds platform to command higher advertising rates.