There have been rumors that Apple will develop a cheaper iPhone around since at least 2011. Apple has likely been avoiding a cheaper model due to concerns it might reduce sales of its current phones. Bloomberg reports
that a source tells them Apple plans to sell a smaller, cheaper iPhone as early as 2013.
says the price for the device would range from $99 to $149. The phone would be smaller and contain cheaper components than the main iPhone. iPhone 5 prices currently start at $649 for an unlocked 16GB iPhone. The phone costs $199 with a 2-year plan. Apple does sell its older models at lower prices. The iPhone 5 is pictured above.