The somewhat reliable DigiTimes reports this morning that Apple will this year release two new iPhone models, not three as one analyst predicted. Citing industry sources, the trade publication claims Apple is planning two four-inch iPhone models due around summer, one of them being targeted at the midrange market segment (budget iPhone, anyone?).

Interestingly, both these devices are said to use in-cell display technology featured on the iPhone 5. This last tidbit contradicts yesterdays report out of Japan suggesting Apple asked Sharp to cut orders of iPhone 5 in-cell panels in half for the next quarter. Additionally, past reports asserted Apple is moving away from in-cell tech and evaluating a new display technology for 2013 iOS devices called Touch-On-Display

According to DigiTimes:

Previously it was said that Apple would release a lower-cost version of its iPhone with a bigger screen in 2013. But the sources claimed that Apple is indeed developing an iPhone with a bigger screen, but that will not be among the models to be launched this year.

The report goes on to note that mass production issues from in-cell technology in 2012 may prevent Apple from securing adequate supply of these panels in 2013. The site expects about 37 iPhones in Q1 2013, 20 million of which are expected to be for the iPhone 5.

The iPhone 5 shipments are expected to drop even further to approximately 18 million units in Q2 2013 as Apple ramps up production of the next-gen model.

It is worth remembering that DigiTimes has a mixed track record, though theyre usually good with supply chain news.

The jumbo-sized iPhone with a 4.8-inch display, per the rumor-mill, was supposed to come in June, dubbed iPhone Math (we also explained why that moniker wont stick).

Do you buy this latest rumor?
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