Apple iPhone 5S And Low-Cost iPhone Production Starting In June/July

The Apple iPhone 5S and low-cost Apple iPhone will go into full production starting in June or July, according to a new report from Morgan Stanley.

Analyst Katy Huberty met with suppliers in Hong Kong and Taiwan, and, based on those meetings, they claim a launch date sometime in September 2013.

Recent rumors from Sharp’s display division have also claimed that the devices would start production in June or July.

While the report does not offer any new details about the new low-cost iPhone model, it appears that production will begin on that device. The low-cost iPhone is expected to sell well in China with a “sweet spot” selling point of $160.

Speaking about the iPhone 5 Huberty’s sources say sales are in line with analysts forecasts despite other reports which have shown a lack of mass interest in the device.

Recent reports have suggested that Apple is scaling back iphone 5 production because of “lower-than-anticipated” demand. Focusing on that demand question, Huberty writes:

“After a slow start, iPhone 5, is now on track to meet carrier volume expectations and iPhone 4 price cuts could stimulate incremental demand near-term. Carriers see the opportunity for Apple to expand market coverage with 5-inch and lower-priced iPhones over time. TD-LTE licenses, and related phone launches, are expected by year-end.”

Apple is facing mounting competition from the likes of Samsung and Google. The Samsung Galaxy S4 has been well received by reviewers, and the HTC One has been called a step in the right direction for the struggling smartphone manufacturer.

Apple rumors have included a plastic body for the low-cost iPhone and a fingerprint reader for the iPhone 5S. Analysts also suggest that iOS 7 will launch with the release of the new iPhone devices and that the new phones will feature a radical departure in Apple hardware design.

Are you eagerly awaiting the release of a new iPhone 5S or low-cost iPhone?