**Editor's Note: Click here for our list of February's hottest selling smartphones to see how the iPhone fared against the competition.**
Production of a new iPhone with a possible summer launch appears to be in the works.
The same sources who relayed that information to the Wall Street Journal also say that Apple is working on a less expensive iPhone that could be launched in the second half of this year. As expected, an Apple spokesperson declined to comment on either issue. Apple execs have repeatedly said they don't want to dilute the quality of their products by releasing an inferior device, but that talk keeps resurfacing.
These two new devices represent new pressures on Apple since the demand for cheaper products is rising, the Journal noted. The rise of Samsung and other competitors has divided profits in the smartphone world.
"There isn't really any major differentiator between the players at this phase," Neil Mawston, an analyst at research firm Strategy Analytics, told the WSJ. He believes that Apple needs to act like Samsung and launch more products at a faster rate.
The next iPhone, which most likely be called the iPhone 5S, will probably feature slight adjustments from the iPhone 5 with an upgraded processor and camera. Sources also say that Apple is expected to offer an update to its mobile operating system sometime midyear, likely coinciding with the hardware update.