Apple (AAPL) plans to begin production of its next-generation iPhone sometime during the current quarter, according to a new report. The Wall Street Journal’s unnamed sources say the new iPhone will be “similar in size and shape” to the current-generation iPhone 5, suggesting the refreshed model will indeed be the much rumored “iPhone 5S” many are expecting to launch this year.

The most solid report to date suggests Apple’s new iPhone 5S will launch in July or August alongside a second entry-level model that will help bolster Apple’s market share in emerging markets. The Journal also mentions the upcoming low-cost iPhone in its report, claiming that “the 4-inch device will likely use a different casing from the higher-end iPhone.”

The report also notes Apple may be testing “different color shells” for its new low-cost iPhone, but makes no assertion that the device will actually launch with new color options. Earlier reports suggested the iPhone 5S might launch with new colors as well.