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In a move that may pleasantly surprise some consumers and appall others, Apple is rumored to be working on a lower-end iPhone. Although traditionally Apple had sold a relatively smaller number of products targeted at higher end consumers, the move to design and market an iPhone product with a farther market reach is not a recent development for the company.
The company had been considering a less-expensive model since at least 2009 in an effort to introduce new people to the brand and grab market share, possibly in response to rising competition from the likes of Samsung and the Android operating system in general.
While nothing has been finalized, and plans to develop and release such a device could very well be canceled in the end, some of the possibilities considered include a phone that very much resembles the current iPhone only with a more cost-effective polycarbonate plastic body as opposed to the aluminum housing used in the current iPhone 5. It is also possible that many other parts could remain the same or recycled from older iPhone models.
Source: The Wall Street Journal