iPhone 5 production to begin in August

Morgan Stanley analyst Katy Huberty claims Apple will begin production of the iPhone 5 in the second half of August and ramp up progressively through the rest of the year. Using information obtained from Taiwanese sources, Huberty also writes in a recent research note that the iPhone 5 will go on sale in September, a date that coincides with earlier leaks.

The iPhone 5 will be a big seller for Apple and the Morgan Stanley analyst keeps her yearly sales estimate of 72 million units. Third quarter sales may drop due to the September arrival of the iPhone 5, but an increase in sales during the fourth quarter will make up for any third quarter lag. Huberty also believes that Apple is working on a lower-priced iPhone and an Apple-branded TV. Both of these rumors have floated around for a while and have yet to come to fruition.