Will US consumers see discounted pricing on iPhones too?
Apple is reportedly developing a budget version of the iPhone that could cost half as much as its latest handset, in an attempt to push back against arch-rival Samsung and increase sales in Asia.
With competitors producing touch-screen devices for under $100 (£62) without subsidy, analysts say that to make an impact Apple would need to price its budget model at around $300, half the price of the latest iPhone.
Scheduled for launch in the second half of this year, according to manufacturing sources, a second model would mark a major shift in strategy for Apple, which has produced just one handset a year since it first appeared in 2007.
The prototypes have a larger display than the iPhone 5, according to manufacturing news site Digitimes, and could feature a less expensive body, possibly made of plastic rather than the aluminium casing favoured by Apple.
Last year saw the arrival of touch-screen smartphones from ZTE, Samsung and Lenovo that cost less than $100, a development that will push annual sales of what are in effect miniature computers to the 1bn mark for the first time in 2013, according to accountants Deloitte.