APPLE TO BEGIN PRODUCTION OF THE IPHONE 5S THIS MONTH

Apple will being production of the iPhone 5S at the end of this month, Jefferies analyst Peter Misek reports.

He says the new iPhone is likely to be released in either late September or early October. It's not going to help the September quarter.

He also says Apple has already begun production of its lower-cost iPhone, which he believes will sell for $300-$400, without a subsidy. At that price, it's more a mid-tier phone, and "it will not be competitive in emerging markets," according to Misek.

He believes Apple is going to put in orders for 50-55 million iPhones in the fourth quarter, with 5 million iPhone 4Ss, 20 million low-cost iPhones, and 25 million iPhone 5Ss.

His checks indicate that Apple has been shifting its orders to cut back on iPhone 5S production while increasing low-cost iPhone product for the end of the year.