There is speculation that Apple may release two new iPhones in 2014 – one which will be an upgrade to the existing iPhone 5S flagship phone, and the iPhone 6, which is expected to be a phablet-sized handset.

The iPhone 6, also dubbed the iPhone Air, is expected to compete with the likes of Samsung's successful Note series.

Apple has traditionally released only one handset per year, but Katy Huberty of Morgan Stanley predicts that we can expect "multiple refreshes per year." This prediction, reported by Apple Insider, comes from an assessment based on recent dialogues with Apple's executives.

Competitors such as Samsung, HTC, and Sony release more than one flagship handset a year, and Apple is expected to ramp up its game.

Samsung's Note phablet has been a worldwide success since its launch, and the latest Note 3 has already sold over 5 million handsets in one month. Samsung's Galaxy S4 reportedly sold over 40 million units worldwide.

A recent NPD DisplaySearch report states that fans can expect to see two smartphones next year with both 4.7-inch and 5.7 inch displays.

Other rumors surrounding the iPhone 6/iPhone Air is a sapphire glass cover, Sharp IGZO technology, 4GB RAM, 64-bit processor with dedicated M7 chip, and 128GB storage.

Apple is also rumored to launch an iWatch compatible with the iPhones. Some reports state that it would launch alongside the iPhone 6 next year, but that is merely just speculation and Apple will most likely hold a separate media even to launch any new hardware.

If Apple will indeed launch two new smartphones in 2014, a first-quarter launch is likely for the first handset, followed by the launch of the second handset on the third-quarter.

The sales figure for the iPhone 5S remains high and Apple announced that it is the best-selling iPhone to date. The gold iPhone 5S has been sold out everywhere, with new stock not available until later this month or December.