Reports are that Apple is developing a low-cost version of the iPhone in order to compete with Samsung, LG and other manufacturers. Plans are to launch the device in the second half of 2013, using a polycarbonate plastic shell with a variety of parts from older iPhone models.
This new, cheaper iPhone will primarily be used to target the world's developing mobile markets, particularly China, where iPhone models are consistently undercut by affordable Android handsets. Apple's stock has fallen 25 percent since it reached an all-time closing high of $702.10 in September as investors worry competitors are gaining ground.
Source: Wall Street Journal