Is Apple testing an iPhone 5S and a cheaper iPhone?

Currently there are reports that Apple’s iPhone 5 is a facing low demand and that Apple has cut orders for LCD panels for its latest phone. Apple’s Stock Price has taken a battering and for the first time in 11 months, it has fallen below $500. But it seems that Apple has already begun working on the next version of the iPhone 5 if this report is to be believed. According to Apple Insider, Apple will begin preliminary builds of the device in March, and the smartphone could be out by June or July. Rival Samsung’s flagship device the Galaxy S IV is expected to be out by March. The report is based on a note circulated to investors by Jefferies analyst Peter Misek where he states that Apple is testing two iPhone prototypes. One being the iPhone 5S and the other a low-cost iPhone. [caption id=“attachment_590309” align=“alignleft” width=“380”]  The iPhone 5 in this file photo. Getty Images[/caption] Apple’s marketing chief Phill Schiller had dismissed reports of a cheaper iPhone , stating that “this is not a direction that we want to be heading in with our products.” Schiller said that a cheaper phone was just a strategy to capture more market share and that Apple would not head that way. According to a BusinessInsider report Misek’s note also states that the iPhone 5S has a new “super HD camera/screen, a better battery, and NFC,” and “possible updates include an IGZO screen for Retina+” The device could come in six to eight colours like the iPod Touch (fifth generation). Apple is holding a conference call to discuss financial results of its first fiscal quarter on 23 January.