Apple is planning to launch its updated iPhone model in summer 2013, which is anticipated to look similar to the current iPhone 5.
The company is also planning to commence the production of the next iPhone in the following three months, according to the Wall Street Journal.
According to reports, if Apple sticks to its naming pattern, the new iPhone due to enter production would most likely be the iPhone 5S and would feature internal hardware upgrades including an enhanced processor.
In addition, the device would feature a new version of iOS which would offer software enhancements.
Apple is also rumoured to be working on a low-end iPhone model targeting developing countries, though Apple has played down such rumours in the past.
Recently, the smartphone maker has also filed a patent at the US Patent and Trademark Office (PTO) for its new iPhone design that features wraparound 3D display and no buttons.
The new model will incorporate two AMOLED screens one on top of the other and the display would cover the overall surface of the device, which is expected to offer enhanced 3D experience to users.