There has been a lot of rumour recently of Apple preparing to release a new iPhone in September. However, analyst Chris Whitmore of Deutsche Bank says Apple will release two new iPhones, the iPhone 4S and the iPhone 5.

A budget iPhone model has been rumoured for months, but little evidence seeks to exist. Whitmore believes “With Nokia and RIMM struggling the time is right for Apple to aggressively penetrate the mid range smartphone market.”.

He goes on to say that the iPhone 4S will be targeted towards pre-paid customers rather than contracts and will cost around $350 (£220).

Other analysts predict there will be only one new iPhone and that it will go into production in mid/late August for sale in September.

The new iPhone is likely to have a better processor (the A5 that powers the iPad 2), a better camera, a redesign and maybe a NFC chip for mobile payments. However, the exact specification, release date and what model will be released is anyone’s guess. What are you predicting?

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