Production of the next iPhone is underway, according to a Japanese report.
The main manufacturing company for the iPhone - Foxconn - is reportedly producing the iPhone 5S and there might not be any trouble in constructing the smartphone.
"It seems that most production-process alterations cannot be found so that it may be produced with the same line as iPhone 5," stated the Japanese blog Macotakara.
Furthermore, the iPhone 5S could see a summer release date of either June or July this year.
Carrier NTT DoCoMo, according to Mactakara, is reducing the number of Android smartphones for the fall 2013 season. The likely reason is to give room for the next iPhone smartphone.
Jefferies analyst Peter Misek, in a note to investors, stated two iPhones are currently in development: the iPhone 5S and a low-cost iPhone likely to be the "iPhone Mini."
While Misek believes Apple will sell up to 44 million iPhone units during the March quarter, he does expect a wane in demand as rumors of the iPhone 5S grows.
"Similar to the iPad Mini, we expect a concentrated low-cost iPhone rather than a 'cheap' one," Misek said. "Likely specs: polycarbonate case with 4" non-Retina display and no LTE."
Misek's note follows fellow analysts Katy Huberty of Morgan Stanley and Gene Munster of Piper Jaffray.
"We believe Apple could launch iPhone Mini at $330 in-line with flagship products in China from Lenovo, Huawei, ZTE and Coolpad," stated Huberty in the note. "Even in a scenario of low 40 percent gross margin and 1/3 iPhone cannibalization rate (flattening legacy iPhone shipment growth), which we view as conservative, the iPhone Mini adds incremental revenue and gross profit dollars."
Meanwhile, Munster stated Apple's a lower priced iPhone could be priced between $199 and $249 and a September quarter release date is likely.
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