Our supply-chain checks indicate that AAPL is working to launch multiple new phones in the June/July time-frame this year. Specifically, AAPL will launch the iPhone5s and a more affordable but lower-end iPhone at the same time, in either late CYQ2 or early Q3. The low-end iPhone will have the same 4" form factor as the iPhone5 but will have plastic casing and no retina display. With a lower price-point, AAPL will be able to target a growing and important part of the Smartphone market (sub-$400 price-band).
Daryanani's predictions differ from other analysts who do believe the device will feature a Retina Display. Additionally, Apple just announced that any apps submitted to the app that support its latest generation devices (ie iPhone 5, iPod touch 5G), must also support the taller screen and Retina display resolution starting May 1st.
At this point a non-Retina iPhone seems unlikely; however, Apple could really be trying to drop the price point .