Apple may release smaller, larger iPhones

Analysts have kept a close watch on the iPhone supply chain for years, hoping to see indicators that the popular smartphone could move to a new carrier or enter a new phase of development. Now, supply chain checks are showing that Apple could soon be releasing a new series of iPhones with high- and low-end models.

According to analyst Shaw Wu, a look into Apple's supply chain reveals that the company could soon be releasing two new versions of its iPhone: one with a smaller and one with a larger touchscreen than the phone's current 3.5-inch display. Although Apple traditionally releases new models on an annual basis, Wu speculates that these new iPhones could be released much sooner than next year.

Analysts state that Apple's decision to upgrade its iPhone line could be an attempt to compete with the rapidly expanding Android phone market, Google's direct iPhone competitor.

Releasing different iPhones at various price points would mirror the strategy that Apple has adopted with its iPod - a three-tier system consisting of the iPod Touch, iPod Classic and iPod Nano, all with different features and prices - as well as with its MacBook line, which includes three different sizes and original, Pro and Air models.