Digitimes reports further speculation Apple plans to release a lower cost iPhone to emerging markets, based on chatter within supply chains in Taiwan:
Speculation currently circulating in the iPhone supply chain in Taiwan indicate that Apple plans to launch an inexpensive model targeting emerging markets with initial quarterly shipments of only 2.5-3.0 million units to test market response.
Sources claim the lower cost iPhone would come with a 4-inch display low-temperature polysilicon (LTPS) display powered by the A6 chip to take advantage of the high yield rates from established components. These parts are already in use within the current iPhone 5. As for the chassis again it is said to be made of plastic:
Apple will also adopt cost-effective plastic chassis for low-priced iPhone, the sources added.
The new lower cost iPhone would be manufactured by existing partners such as Foxconn and Pegatron, according to sources.
KGI Securities analyst Ming-Chi Kuo previously noted a lower cost iPhone could be announced by Apple in a variety of colours, also made of a plastic chassis. Last month an alleged plastic chassis of the rumoured lower cost iPhone hit the web, heightening expectations Apple is looking to target emerging markets with a budget smartphone.