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According to some latest reports from an Apple Insider, it is claimed that, currently they are working on new iPhone models, which will be unveiled later this year. It is expected that there will be two iPhone models. One of these will be the next generation iPhone, presumably iPhone 5S and the other a cheaper iPhone with a polycarbonate body. The next iPhone is expected by 2014 whereas the cheaper iPhone model can be expected to be released sooner this year.

MacRumours has also reported that according to Barclay’s analyst Kirk Yang, Apple is undeniably working on iPhone 5S and a cheaper iPhone, and about to launch in the August-September of this year. Yang assumes that both the iPhones will have two models, one being made especially for Chinese customers. MacRumours further stated that, “The report claims that Apple is still weighing production volume for the new phones, working to estimate how much the lower-cost iPhone will cut into iPhone 5S sales and still gauging appropriate volumes for an expansion to China Mobile. Regardless, Apple does expect total iPhone shipments to be higher than last year’s levels.”

KGI Securities analyst Ming-Chi Kuo point out that the next generation iPhone will be called iPhone 5S, which will be identical to the iPhone 5. It will feature a faster 28 nanometer A7 chip, fingerprint sensor, smart LED flash and enhanced camera functionalities with f2.0 aperture. The phone is expected to be available in two colors, just like the current iPhones, which contradicts its earlier rumors that new iPhone models would ship with multiple colors like the new iPod touch. Pointing to the budget friendly iPhone 5, he pointed that it would be priced between $350 and $450, with a comparatively thicker (8.2 mm) plastic casing. He also revealed that the production might begin during the third quarter of this year.

Analyst Brian White pointed that Apple will release a new iPhone model with varying screen sizes that will help the company to earn revenue for reach models. He mentioned that the smaller iPhone version is specifically manufactured to target Chinese market and to open up opportunities in India. Peter Misek’s findings mentioned that the next iPhone will feature a new super HD camera and display, longer battery power, NFC connectivity, IGZO screen for Retina+, 128GB storage, and could be available in multiple colors. He stated that many iPhone 5S prototypes were being tested in the recent past. According to him the device had Retina+ IGZO display, A7 quad-core processor and in-built gesture control. It will feature a new design with no home button. He also referred the iPhone mini will be offered at a price range of $200 to $250 and said that the project hasn’t been approved yet.

Larger display with sharp images would help the iphone application developer to build vibrant iPhone applications with high definition images and sharp looking UIs. It would also affect the app design strategy for developers and designers.