Apple (AAPL) Inc.'s much awaited and much talked about budget iPhone is set to be a big disappointment to all thrifty buyers who were crossing their fingers for an iPhone device just within their means.

The budget iPhone or low cost iPhone is not budget-friendly after all.

This was confirmed by the phone's major manufacturer Pegatron's CEO T.H. Tung.

According to Mr. Tung, speaking before the Pegatron's shareholders meeting held on Thursday, Apple's low cost iPhone will not be a budget offering. In fact, it is to be sold as a higher-end middle tier device, AppleInsider reported.

According to a report from China Times, Mr. Tung said that Apple's budget iPhone is not cheap and that the price is still high. He said that that the supposedly budget iPhone should no longer be associated with rumors that the unit will be Apple's least expensive iPhone.

Mr. Tung said, "The price is fairly high..."

With this, the low cost iPhone or budget iPhone will be famously dubbed as iPhone Lite.

The statement from Mr. Tung was viewed credible by industry analysts as previous news hinted that Pegatron was set to be the iPhone Lite's primary manufacturer. It is to be remembered that in the Month of May, Pegatron equipped its operations with 40,000 new hires.

However, there are still rumors about Foxconn taking much of the manufacturing job. Analysts still wait for Foxconn's additional information on the iPhone Lite's upcoming price.

iPhone Lite casing

Meanwhile, AppleInsider leaked some 3D renderings of the iPhone Lite. The report said that the 3D renderings were made by third-party phone case maker. It the leaked renderings were correct then the iPhone Lite will have curved edges and a somewhat thicker frame from the iPhone 5.

Some sources were putting their foot firm forward, saying that the leaked 3D renderings were authentic and indeed was made to fit the rumored iPhone Lite. In fact, sources claimed that the manufacturers were already in the process of creating this supposedely "rumored" casing for iPhone lite.

According to unnamed sources interviewed by AppleInsider, iPhone Lite resembles iPhone 5 closely. It has 4-inch screen, home button and FaceTime camera fronting the mobile device. The device also has headphone jack on the bottom, microphone input, lighting connector and speaker output; lock button and volume controls on the left side.

At the back, iPhone Lite has an iSight camera, rear-facing microphone and Led flash.

In a nutshell, the iPhone Lite will have plastic casing that closely resembles that of an iPhone 5, including the 4.5 inch screen; but much of its physical features do not shift away from the standard look of all iPhone device. From earlier reports, iPhone Lite will be introduce in multi-colors possibly black, white, pink, yellow and blue; and its price is set at $400 and above.

The iPone Lite is set to be launched on 3rd quarter of 2013.

With this news that there won't be a low cost or budget iPhone, this leaves, the Samsung Group with all the bulk of the market coming from the low-end.

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