White says he is "now confident that a lower-priced iPhone will be launched by Apple in 2013, possibly as early as June." The device will reportedly cost $250-$350 unsubsidized and could be dubbed the 'iPhone mini' or 'iPhone Air'.
“A $250-$300 price range would also be competitive with China-based Xiaomi that offers a high-end phone experience at a mid-range price of ~$320 in China,” he writes. “We believe a $250-to-$300 price point will allow Apple to significantly expand its reach in the smartphone market and better address developing markets such as China, while opening up more opportunities in Brazil, Russia, India and elsewhere.”
A recent report from iLounge also claims Apple is working on a low-cost iPhone with a plastic body.
Also planned for a 2013 release is Apple’s “low-cost” plastic-bodied iPhone, which is being developed with China Mobile in mind: the government-owned telecom company has over 700 million subscribers.
Click here to check out a mockup that shows what an 'iPhone mini' would look like if it kept the iPhone 5 design but dropped the screen size back down to 3.5 inches.