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(Pocket-lint) - Apple will begin production of the next-generation iPhone in Q2 of 2013, pointing to a summer launch, according to The Wall Street Journal.

The new report lines up nicely with what others have said in the past. The next-generation iPhone will sport the same design as the iPhone 5, says the WSJ, though the internal specifications will be upgraded -- specifically the camera and processor. In short, it will be an iPhone 5S, as expected.

READ: Samsung and Apple tipped to include wireless charging in next-gen flagships

Interestingly, the Cupertino-based company is also said to be entering a new realm of budget devices this year. Apple is working on a budget iPhone that will launch in the second half of 2013. It will be a 4-inch handset that will use a different casing (maybe plastic) that could come in different colours, says the newspaper reports.

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Apple has been seeing big success in emerging markets, such as China. According to Tim Cook in January, growth in China is exceeding growth in the US and China has seen record-breaking sales numbers as customers in the country get excited for new devices. The budget device that are being suggested could bring huge rewards for the company.

Could another minor iPhone bump be a potential hurting point for the company? With Samsung's large marketing budget for the Galaxy S4, Apple has some real competition to tend to.

Past a speed bump, other iPhone 5S features are currently unknown. 

What do you think of Apple releasing an iPhone 5S?

Writing by Jake Smith.
Sections Apple Apps