As indicated in their report:
The iPhone 5, Apple’s next generation iPhone expected to go on sale around October, will come with a 19-pin connector port at the bottom instead of the proprietary 30-pin port “to make room for the earphone moving to the bottom”, two sources familiar with the matter told Reuters. That would mean the new phone would not connect with the myriad of accessories such as speakers and power chargers that form part of the ecosystem around iPods, iPads and iPhones, without an adaptor.
A small dock connector would no doubt free up some room within the iPhone in which Apple can utilize for other features, i.e. larger battery, bigger camera sensor, etc., but at the same time this would also render all accessories incompatible with the next-gen iPhone, unless Apple decides to provide an adapter of sorts. Either way with nothing officially announced, we suggest taking this with a grain of salt for now, but stay tuned as we will keep you updated with the latest news!