Apple Is Said to Work on Cheaper, More Versatile IPhone Models - Businessweek

More on the rumored Apple iPhone market expansion plans

While Apple has aimed to unveil the device near mid-year, the introduction may be delayed or scrapped, the person said. Few Apple employees know the details of the project, the person said. Apple often works on products that don’t get released.

The prototype was about one-third smaller than the iPhone 4, and it had no “home” button, said the person, who saw it last year.

Apple would sell it at a low price mainly because the smartphone will use a processor, display and other components similar to those used in the current model, rather than pricier, more advanced parts that will be in the next iPhone, the person said. Component prices typically drop over time.

Apple Is Said to Work on Cheaper, More Versatile IPhone Models - Businessweek