According to Jefferies analyst Peter Misek, Apple is set to begin mass production of its next iPhone this month, ahead of an autumn launch, while the rumoured low-cost iPhone is already being produced.

Misek believes that the next-generation iPhone, dubbed iPhone 5S or iPhone 6, will be unveiled in "either late September or early October," reports Business Insider.

While Misek didn't specify when he expects the low-cost iPhone to launch, he did say that he believes Apple has already begun producing the cheaper device, and that he expects it to sell for $300-$400 (£200-£260), a price tag that is not so "budget" after all. Misek suggests the low-cost iPhone will compete with midrange smartphones, and that it "will not be competitive in emerging markets."

Misek thinks that Apple will order 50-55 million iPhones in the fourth quarter of the year, with 5 million of those iPhone 4S units, 20 million low-cost iPhone units, and 25 million units of the next-generation iPhone.

Misek doesn't have a great track record when it comes to predicting upcoming Apple products, but it is likely that the next generation will arrive later this year. Apple has said that iOS 7, the next version of its mobile operating system, will be rolled out in autumn, and we expect a new iPhone coincide with the release.

[Via Business Insider]

See also:

What does iOS 7 tell us about iPhone 5S, iPhone 6?

Should I buy an iPhone 5 or wait for iPhone 5S?