Apple to unveil new iPhone at low cost

According to sources, Apple Inc. is going to unveil its smaller and cheaper version of the iPhone as soon as this year to gain in developing market. The device will debut with a price tag of between $99 and $150 going on sale by end of the year.

The earliest smart phone would be approximately a third the price of current models costing $650 unless contract in the US, Bloomberg reported, citing a person familiar with the matter. It is expected to reach the retailers in late 2013. The smartphone would be smaller than current models and would be made from cheaper parts.

The company has been developing more affordable phone since February 2011.

According to reports, the iPhone generated $80.5 billion in sales last year.

A lower-cost version of iPhone would also help apple compete with google’s android phones, which are available in a wide range of prices.

Earlier, reports suggested that the lower-cost iPhone would look like a standard iPhone 5, but made with cheaper materials.