Apple to release an iPhone with a plastic casing

As reported by The Wall Street Journal, Apple is preparing to release a budget version of its flagship smartphone as early as this year.

Rumors about the company's plans to release an inexpensive smartphone have been circulating since 2010 when the iPhone 4 was launched. But only now, analysts believe, has there been a real necessity for such a product. Affordable devices allowed Android to gain strength at the time, pushing Apple devices out of the market. And now, if Apple does not respond to Google's challenge, it may face the dominance of the search giant's smartphones in all segments.

According to WSJ, the cheap iPhone will not differ externally from the iPhone 5; however, its body will be made of plastic instead of aluminum. It is possible that processors from previous generations of Apple smartphones will be used as the hardware.

Analysts believe the budget iPhone will be aimed at developing markets, primarily China. The successful sales of the iPad mini, which is in high demand in the Chinese market, may have also provided an additional incentive to release a budget version of the iPhone.

Though one might wonder why Apple would venture into making such devices, considering that older iPhone models continue to perform well in the market and essentially serve as budget gadgets for the "Apple" company.