Apple is heavily inclined for a third quarter refresh of the iPhone 5 by Q3 2013, by that time to be known as iPhone 5S, centred on A7 chips and retaining the 4-inch screen size, a new report said.

Citing the forecast and a projected Apple roadmap put together by KGI Research, BGR News said on Wednesday that is highly likely that two new iPhones will crash the global gadget scene between July and September this year.

One is the iPhone 5S, which KGI said, will be offered in black or white with the same metal body-build. The upgrade will mostly sustain the present iPhone 5 attributes save for two notable bump ups: this handset comes with a fingerprint sensor and 1600mAh battery pack, replacing the 1420mAh that was included with the iPhone 5.

The KGI-designed Apple roadmap also pointed to a simultaneous release of a 'new design iPhone 5', presumably that iPhone Mini that analysts claimed would be compelled to make for its purported aim of gaining entry on market segments traditionally controlled by Android and feature phones.

This iPhone Mini, the report said, will be on A6 processing chips and will share the prominent features of its bigger sibling, including screen size and display technology, making for a powerful iPhone 5 alternative within the Apple sphere.

As expected, the glaring difference will be on price tag, KGI said. Apple plans to sell the iPhone Mini unlocked at price ranges of $US350 to $US450 while the iPhone 5S will retail starting at $US600, that is of course for the unlocked version.

Reportedly geared for a wider market appeal, the iPhone Mini will hit store shelves in six different colours and the body will be forged from plastic material. The phone is slightly heavier and thicker than the iPhone 5S, the same report said.

These are the latest detailed suggestions that Apple is well on its way to remodel its business approach in order to keep competitive edge, BGR said.

The projections came out following the remarks this week by former Apple CEO John Sculley, expressing his view that the company "need to adapt to a very different world."

In an interview with Bloomberg, Mr Sculley pitched his view that for Apple to remain profitable and keep its gadgets attractive to consumers, it has "to dramatically rethink the supply chain."

It is important that Apple find the right formula that will pull down iPhone's price tag below $US500 mark when rivals are selling Android phones that go as low as $US100, the former Apple chief executive said.

He noted too that iPhone, in fact, remains on top of its field but there is no denying that competitors, Samsung in particular, are fast catching up.

"Samsung is an extraordinarily good competitor ... The differentiation between a Samsung Galaxy and an iPhone 5 is not as great as we used to see," Mr Sculley told Bloomberg.