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.