Apple is preparing to launch a cheaper, plastic-body iPhone this summer, according to reports.
Amit Daryanani of RBC Capital Markets has reportedly told investors that Apple plans to launch the cheaper phone as well as the iPhone 5S in June-July this year.
He said: "The low-end iPhone will have the same 4-inch form factor as the iPhone 5, but will have a plastic casing and no ‘retina’ display."
The reports come as speculation mounts that Apple is aiming to create an iPhone that will appeal to young, middle class consumers in counties like India and China.
Jeremy Horwitz of iLounge, told the Telegraph: "One of our sources claims that Apple’s iPhone prices remain too high for most mainland Chinese customers — the iPhone 5 hardware alone starts at $849 there, versus the iPhone 4 at $500, in a country where the average annual salary is around $3,000 per person).
"The source has said that mainland Chinese iPhone 5 sales are already tapering off as a result of the pricing, which is higher than in Hong Kong. A budget iPhone model would help sales in populous but underdeveloped countries to grow."
Earlier this month it was claimed that the budget version would cost around $330 (£220).