Apple looks set to release a new and updated iPhone later this year, rumoured to be strikingly similar to the current iPhone 5.

That is the view of the Wall Street Journal, who says the Cupertino-based company will begin production of the product within the next three months, implying a New Zealand winter launch.

Citing "people familiar with the device's production", the newspaper also says the company is producing a less expensive product, which could be unveiled as early as the second half of this year.

A double device launch, as TechDay likes to call it, follows previous dismissals from Apple marketing chief Phil Schiller, who said the company had no intentions of releasing a knock-down smartphone.

The four-inch device will apparently use a different casing from the regular iPhone, but will no doubt be offered in a range of colours.

Going in direct competition with the Samsung Galaxy S4, the news follows claims that Apple has already designed the next two versions of its iPhone model, which were under the supervision of the late Steve Jobs.