Apple's Budget iPhone: Fact or Fiction?

While plans for an Apple iWatch may have distracted the masses, rumours of a low-cost iPhone have been slowly simmering away under the surface.

Tech website Techdy, not to be confused with TechDay, has released photos of the alleged budget smartphone, along with a video and detailed description of the model.

"The budget iPhone will be made substantially from plastic (we can feel it's actually polycarbonate material)," wrote Chris Chang, editor, M.I.C. Gadget blog.

"It will have a 4″ screen, like the iPhone 5, and interestingly, the budget iPhone actually has a shape that's similar to Apple's original iPod."

False call?

It must be noted however that Techdy's claims have been widely disputed in the press, with the alleged iPhone strikingly similar to that of Techdy's own look-alike version - the Android Us$199 'Basic Bear.'

Budget iPhone rumours come and go, most with a pinch of salt, on a daily basis - meaning the reports from Techdy could be false. But what seems to be nailed on is that Apple will release a lower end model later this year, so that's one guarantee.

"Apple Inc is exploring launching iPhones with bigger screens, as well as cheaper models in a range of colours, over the next year, said four people with knowledge of the matter, as it takes a cue from rival Samsung Electronics," Reuters reported last month.

Apple unexpectedly declined to comment then, but looking back to May this year, world electronics distributor ETrade Supply made similar claims, insisting:

"Well we just heard "on the wind" confirmation that Apple will in fact be releasing these lower end models. And we are not the first.

"This is not the game changing move that we are used to from Apple which had kept them on top for so many years.

"But after disappointing sales figures from the iPhone 5, and not much being expected form the iPhone 5S, Apple needs a new strategy.

"So it has been suspected for a while that they may eventually release low to mid-range models to make up for lost market share until they can come up with a new innovative idea."

Fresh from releasing iOS 7, iTunes Radio and a range of other updates only a matter of weeks ago, it wouldn't be normal and it wouldn't be Apple if daily rumours didn't surface about what it will or won't do.