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iPhone 4S To Go Into Production In August, Apple Reducing iPhone 4 Shipments

Two reports out of DigiTimes today reveal that the next generation iPhone, which they call the iPhone 4S, won’t have LTE capability and will go into production in August. DigiTimes claim that the iPhone 4S was originally planned to be LTE capable but was recently scrapped after it was revealed that Qualcomm was facing problems in producing the chips in large enough quantities for the iPhone.
Instead, LTE capability will likely make its way into the following (sixth generation) iPhone in 2012. A number of carriers, including three top Chinese telecommunication companies will be disappointed after expressing interest in selling an LTE capable iPhone. Despite this, China Mobile, which will have 27 million users by the end of this year, is expected to reach an agreement with Apple to sell the iPhone 4S when it is expected to launch in September this year.
With plans to begin production of the iPhone 4S in August, and nearly 2 million iPhone 4s in inventory according to sources, Apple has reportedly lowered its expected shipment volumes for the iPhone 4 (for Q2 2011) to 17.5-18 million units, a reduction of about 2 million units. Around 2 million are expected to be the CDMA version whilst around 16 million 3G models. Apple is however expecting shipments of iPad 2s to increase substantially from 7-8 million units to 10-10.5 million units in Q2, 2011.
The iPhone 4S will reportedly include 3G and CDMA chips from Qualcomm, a rear 8MP camera from OmniVision Technologies and Largan Precision to produce image sensors and the lens. Prior rumors had suggested that this years iPhone would feature some slight design modifications and the support for HSPA+ because of the lack of readiness of 4G chips as DigiTimes is today reporting. It was also rumored that it would also contain an 8MP camera, but from Sony, not OmniVision and Largan Precision.