Report: budget iPhone coming this year

Electronic parts distributor claims knowledge about budget Apple smartphone

Apple will release a low-spec budget version of the iPhone this year, according to a source claiming to have expert knowledge on the matter.

ETrade Supply International, an electronics parts distributor and technology solutions provider, writes in a blog that it has heard "on the wind" confirmation Apple will be releasing a low-cost iPhone before the end of this year.

It isn't the first time reports of a budget iPhone have appeared, with a leaked roadmap of Apple products having previously suggested Apple will release such a device. If previous rumours are to be believed, the budget iPhone will be the same size and shape as the iPhone 5, but with a plastic case instead of a metal one. The switch to plastic would make the budget iPhone cheaper to manufacture, but also less protected against accidental damage.

Apple has seen its position of top dog challenged by Google's Android operating system. But unlike Apple's iOS software, which is limited to its own iPhone and iPad products, Android is available to use across a wide variety of devices by different manufacturers.

That's led to the availability of budget Android smartphones from firms including HTC, Acer and Huawei, which can cost as little as £100.

Therefore, with a significant price barrier for the iPhone pushing some first-time smartphone buyers towards Android, a budget iPhone could provide a way to stem the tide.

While hardly in financial trouble, Apple's latest financial results saw profits fall for the first time in a decade.