Hon Hai Precision will begin shipping two different iPhone models

Aug 20, 2013 06:28 GMT  ·  By

Apple has reportedly asked Foxconn to prepare for bulk shipments of its two new smartphones, the high-end iPhone 5S and the rumored (low-cost) iPhone 5C.

People familiar with the situation are telling the Wall Street Journal that “Apple Inc. has asked assembler Hon Hai Precision Industry Co. to begin shipping both a new high-end and low-end iPhone in early September.”

The move is described as a “strategy shift” as Apple has never launched two different iPhone models before, but now it is forced to do so to regain some of its momentum.

The same sources say that Apple’s Asian suppliers have started mass-producing the parts for the new iPhones in June.

An Apple spokeswoman (obviously) declined to respond to inquiries regarding these rumors, but the same WSJ earlier reported that Apple was to hold a special event on September 10.

During this event, Apple will reportedly unveil the two new iPhones with cool new features and attractive pricing.

Effectively repackaging the iPhone 5 in a plastic shell, Apple is said to discontinue the current-selling iPhone in favor of the new iPhone 5C.

No particular reason was given in the KGI Securities research note that spurred this rumor, and the move seems all the more strange considering that the company is also said to be keeping the iPhone 4S on sale.

One theory is that the iPhone 5 remains tough to manufacture, and there have also been numerous issues with the phone’s buttons and ports, forcing Apple to issue replacements.

A plastic iPhone 5C would not only alleviate some of the manufacturing woes, but would also keep the bill of materials at a minimum.

As for the iPhone 5S, this is said to be Apple’s more expensive upgrade featuring a fingerprint sensor, dual-LED flash, an upgraded processor and perhaps more.