Apple iPhone 5 goes into production in time for September launch

Apple has started production of the iPhone 5, and the device is expected to begin shipping this September in line with the firm's yearly refresh cycle.

Taiwanese laptop manufacturer Pegatron has secured the manufacturing contract, and has been tasked with building 15 million fifth-generation iPhones, according to DigiTimes.

Nothing has been officially confirmed, but production would need to begin around now if Apple wants to launch the next iPhone in September, explained Nick Dillon, platforms and devices analyst at Ovum.

"Consumers who purchased an iPhone 4 on an 18-month contract at launch will be coming to the end of their contracts and will be eligible for upgrades around September," he told V3.co.uk.

"If Apple delays the launch much beyond September it risks losing these customers to other handset manufacturers.

"The 15 million number seems on the high side for a launch figure as Apple has traditionally been conservative in production, preferring to ramp up production after the launch. With previous launches the company has tended to under-stock rather than over-stock."

Carolina Milanesi, research vice president at Gartner, agreed that launching the next-generation iPhone this autumn is a good idea and is likely to boost sales of Apple devices.

"September makes a lot of sense as it is the time when we usually see the new iPod line and is closer to the holiday season. With iPods losing traction outside the Touch, it would make sense to launch the latest Touch and iPhone together," she said.

"Apple will continue to innovate the overall user experience and create a strong tie between the iPhone and iPad with the latest iOS 5 software."