iPad 2, iPhone 5 Drop Home Button
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Those holding out for an iPad 2 might get more than just an added camera if an Apple source is correct.
An Apple source told BGR that recent multi-touch gesture functionality in the iOS 4.3 beta has been released to support next generation iPads without the single ‘home’ button. The lone button on the iPad’s screen will also be dropped from the iPhone 5.

Apple employees are currently testing no-button designs for a possible release this year.

Despite being the presumed leader in the tablet market with its flagship iPad product, Apple is lagging behind competing tablets like the Motorola Xoom and the BlackBerry PlayBook which have already been developed with a button-free fascia.

Apple’s multi-touch gesture system involves using more than just a single or two fingers for swiping and pinching, using all the fingers for more intricate and specific gestures.

Instead of double-clicking the home button on an iPad to access the multitasking bar, users simply swipe a finger upwards.

Navigation between apps will be as simple as swiping five fingers across the screen.