Is Apple Developing a Cheaper iPhone?

Apple is reportedly working on a lower-cost iPhone and it could arrive as soon as this year.

This rumor is courtesy of the Wall Street Journal, which cites "people briefed on the matter." The Journal's report comes just hours after a similar post from the usually unreliable Digitimes, which posited that a lower-cost iPhone targeted at China and other emerging markets is on its way.

WSJ's sources indicate that the lower-cost phone could resemble the standard iPhone 5, but with a lower-cost body. Instead of using aluminum, sources say the shell might be polycarbonate. Other parts, such as the processor and graphics chip, could be sourced from parts designed for older iPhones.

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