Former Engadget editor Joshua T. is hearing that Apple’s upcoming iphone 5 will have a new tear drop design with a 3.7 inch screen. Joshua also notes that the home button is bigger and is to be used as a gesture area also?..According to Joshua:

Our sources say the new model (or at least one of the new designs in testing) looks “more like the iPod touch than the iPhone 4.” The phone will be thinner than the iPhone 4, and may have a “teardrop” shape which goes from thick to thin (something along the lines of the MacBook Air profile).

Our source says the company is doing very “interesting things” with bonded glass technology, and has been exploring designs where the earpiece and sensors are somehow behind the screen itself, making for a device where the display is actually edge-to-edge.

Our sources can’t confirm whether or not Apple’s working on its own version of cable-free juicing. There’s also a “swipe area” shown in the drawing which appears to be on the bottom and / or top of the device — that could very well be an NFC point, but that’s pure speculation on our part.

More information about iPhone 5 rumor here and here.