
We'd previously reported on the microphone button that appears next to the spacebar hidden in the depths of iOS 5. This presumably allows users to dictate rather than type. Android has a similar system already implemented, as seen in the video above.According to a source testing the feature, it works almost identically (video above) to the Android operating system's speech-to-text feature. It's also very polished, quick, and accurate said the source - which is obvious for being an Apple product but also is indicative of the product being nearly complete.

Reports of Apple's ongoing negotiations with Nuance date as far back as May, with some claiming it was still coming in iOS 5. iOS 5 is due for public release "this fall".
If all true, Apple must be planning on launching their Nuance dictation system alongside the public release of iOS 5. Apple is widely expected to hold a media event sometime this month.
Article Link: iOS 5 with Nuance Speech Recognition Enabled in Carrier Testing