Ever since the release of the original iPhone, there’s only been one additional phone produced each year, in each generation. The iPhone is relatively expensive, and can even be seen as a luxury phone, a phone for the middle to upper-class. The same can be said for Apple’s Macintosh computers, and this mentality is part of why Apple’s iPhone has so many sales. A budget iPhone would kill that mentality.
There have been rumors circulating around the internet for a long time that Apple has been planning to create a cheaper, lower quality iPhone for some time now, but as time goes on, that appears to be more of a certainty.
This rumored lower-end iPhone is expected to be made with cheaper and low quality materials, most likely plastic, but still expected to be stronger and more durable than other smartphones with plastic casing. However, the screen is likely to remain the same size as the current iPhone 5. Another feature the budget iPhone and the iPhone 5 will share is the lighting connector, which is used for charging and syncing.
The decision to produce a budget-friendly iPhone appears to be among a variety of things Apple is using to compete against their main rivals Samsung, who launched 37 different models of smartphones in 2012, and also boost iPhone sales in China. This would be a big step forward for Apple, who has previously only launched one iPhone per year.