Will the iPhone 5 Be Discontinued?

Iphone 5

According to the Korea-based ETNews and reported by Apple Insider, Apple (NASDAQ:AAPL) is planning on abandoning further production of the current iPhone 5 model in favor of focusing production resources solely on the two upcoming versions — the iPhone 5S and the so-called “iPhone Lite.” The source of the rumor appears to be an Apple supplier, or “partner company.”

If the rumor is true, it would be the first time that Apple has stopped production of the last generation of iPhone after a new model was released. Apple typically continues to produce and sell the last two generations of iPhones as lower-cost options for consumers, especially in emerging markets.

According to ETNews, the Cupertino, California-based company will instead focus resources on the production of the rumored entry-level iPhone and the iPhone 5S. The report notes that the iPhone 5’s particular type of LCD touchscreen panel is “not suitable for low-volume production.” The report also seems to suggest that Apple’s iPhone 5 inventory is still “substantial.”

Another industry rumor reported by the Taiwan-based Commercial Times last week suggested that Apple would have to delay the launch of the iPhone 5S by several months due to a decision to redesign the device with a larger 4.3-inch Retina display. According to the publication’s sources, the iPhone 5S will not be launched until close to the end of the year.

The same source also reported that the plastic iPhone would still be ready by the end of the third quarter. Many analysts are expecting Apple to unveil at least two different models of iPhones sometime this fall. Various supply chain rumors and multiple leaked images of plastic iPhone casings in different colors seem to confirm these expectations.

This is how Apple traded this week:

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