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In a factory in China there are stacks of completed iPhone 5’s just sitting there!

A new report came to us from DigiTimes. They are reporting that production of the unreleased iPhone 5 is in full swing with 150,000 phones being produced each day. Accordingly, this is not the production “volume” Apple was looking for as it gets ready to release it for the holiday shopping season.

Lens maker Largan Precision, touch panel maker TPK Holding, reinforced glass supplier G-Tech Optoelectronics and battery vendors Simplo and Dynapack are all operating at full swing currently, the sources indicated.

Further rumors state that the devices are not being boxed just yet either. Apple is holding off on that process because the last beta build of iOS 5 is not finished yet to the point to incorporate them into the devices. Apple is working on finalizing the builds now. The iPhone 5’s will be running iOS 5 from the day of release.

iPhone 5 shipments are expected to ship off the supply chain and reach 5-6 million in the month of September. Reportedly the production will ramp up to 22 million in the final quarter of the year as suppliers ship less of the iPhone 4 and CDMA-version iPhone in the final quarter, stated sources.

Apple also brought a deal with Pegatron technology earlier this year to produce the devices along with Foxconn. However, it is said that Pegatron is holding off on the production of the devices until 2012 and is only said to be producing 15% of the devices overall.