Apple may be planning to release a cheaper version of iPhone this year for emerging markets.

DigiTimes reported that Apple may be working on a new low-cost iPhone that supposedly sports a larger display and a release date that is evidently going to take place at some point in the second half of this year. The report added that the company is looking into releasing a smartphone with 5-inch screen display.

The popularity of the iPad mini in China may be a big reason why Apple is looking to release a low-cost iPhone in new markets where price is a prime consideration of the consumers. The device is also rumoured to come in various hues.

The low-cost iPhone will complement the normal iPhone with a higher price. The possibility of a cheaper iPhone from Apple supported the predictions of analysts.

According to rumors, Apple will launch a new iPhone in two different sizes, possibly with an assortment of colours. If true, it would be the first time that Apple would offer two different sized iPhones from the start.

The market could see two iPhone launches this year; one in second quarter of 2013 and another in third or fourth quarter of the year. This is backed by the reports that Apple is looking to switch to a 6-month cycle instead of a 1-year cycle with the iPhone to be more aggressive against competitors such as Samsung and Google.

This is further supported by Asymco's analyst Horace Dediu who believes that Apple's future will indeed consist of a new generation of device every six months.

This assumption is based on the statement of former Apple CEO John Sculley. According to Sculley, the company is "going through a very significant change now in terms of product cycles," and that "now it's really introducing products twice a year."

iPhone 6 reportedly will include a "Super HD" screen display and camera. Speculations claimed that it is beyond the Full HD displays in HTC Droid DNA.

This notion is backed up by an analyst. According to Jefferies stock analyst Peter Misek, "the iPhone 5S has a new 'super HD camera/screen, a better battery, and NFC,' and 'possible updates include an IGZO screen for Retina+, 128GB storage."

As usual, the Cupertino-based company remained tight-lipped about the details of its upcoming smartphone.