Apple to present high-end and low-end iPhones in September

Apple Inc. has asked its assembler Hon Hai Precision Industry Co. to begin shipping both a new high-end and low-end iPhone in early September, people familiar with the matter said.

The shipping plans suggest that two new iPhone models could be launched as soon as next month, pointing to a strategy shift as Apple attempts to regain its momentum in the smartphone market. That would be the first time two iPhone models are presented at the same time from Apple.

The California based company has been unveiling new iPhones in the fall since 2011. It is planning a launch event on Sept. 10, according to AllThingsD. However, it isnt clear whether Apple would launch both iPhones the same day or initially opt to showcase just one device. New iPhones in the past have become available about a week and a half after their unveiling.

Competitors such as Samsung are planning to steal the moment from Apple by launching their own set of products around Sept 6, four days before iPhone presentation.

Samsung Electronics Co. the largest smartphone maker in the world by shipments, is planning an event on Sept. 4, during which it plans to launch a new large-screen “Galaxy Note” phablet and a smartwatch called “Galaxy Gear,” people familiar with the matter have said.

The pressure from competitors adds to Apples challenges. The company has been facing tough competition from Samsung and other firms making smartphones based on Google Inc.s Android software. A perception that Apples pace of innovation has slowed, along with some disappointing sales of iPhone 5, helped push the companys shares down more than 40% in the span of six months from all-time highs of more than $700 in September. The companys shares have since rebounded somewhat, currently at $509.66, up 1.5%.

Apple has been working with its manufacturing partners in Asia on a cheaper, less powerful iPhone that will likely use a nonmetal casing to differentiate itself from the aluminum casing of the high-end iPhone. The shells of both iPhone models will likely come in multiple color options, officials at suppliers said at the time. Analysts predict a low-cost iPhone could help to boost Apples sales, particularly in emerging countries such as China and India.

Ming-Chi Kuo, an analyst for KGI Securities in Taiwan, estimates that more than 5.2 million units of the next-generation high-end iPhone and nearly 8.5 million low-cost iPhones will be shipped during the third calendar quarter. But by the fourth quarter, he predicts that Apple will ship 28 million high-end iPhones and 18.7 million low-cost ones.

The analyst estimates that total iPhone shipments will top 35 million units in the third calendar quarter which would be a 30% increase over the same time last year—end rise to 55 million in the fourth quarter.

The new iPhone model is expected to have the same size and same screen resolution as the previous model. Apples share price rose 1.1% while still being down 4.6% on a year to date basis.