The Wall Street Journal reports that Apple will start producing a followup to its iPhone 5 in the coming months. According to anonymous sources, the new iPhone will begin production in the second quarter of 2013, possibly setting it for a summer launch. Apple will also apparently be following its traditional update path: the phone is reportedly "similar in size and shape" to the current one. Sources have also apparently reiterated that a lower-cost iPhone is coming: as we've heard before, it's supposed to have a 4-inch screen and use a different casing than the traditional iPhone, possibly in multiple colors. It could be released as soon as the second half of 2013.
Speculation about an iPhone 5S has been predictably regular, and though Apple has so far dodged addressing whether it has a low-cost phone on the way, the device has been reported from multiple sources. The Wall Street Journal is generally a highly reliable source of Apple news, making this latest report about as credible as rumors come.