Macotakara found the photo in the WeiPhone forums. It's authenticity is unclear as it could just be a photo of knockoffs in production. The packaging does seem larger than that of Apple's recent devices.
However, iLounge has already predicted that the iPhone 5C will be the name of Apple's low-cost model smartphone. They also say it will be made substantially from plastic, a cross between an iPhone 5, fifth-generation iPod touch and iPod classic, have a 4” screen, a back similar to fifth-gen iPod touch, and a shape similar to iPod classic.
Check out the photo below and let us know what you think!