A photo leaked by case manufacturer Tactus, published by NetworkWorld, further fueled speculations of a low-cost iPhone. It showed a plastic shell, which is consistent with previous rumours about the upcoming device.

The picture may have some grain of truth in it since it was the same manufacturer that leaked last week photos of the front and back casing parts of a 5th-generation iPad.

NetworkWorld said Tactus did release details of the specs, but pointed out Tactus's poor track record in terms of specs leaks. The report said the low-cost iPhone would have an A5 processor, 3.5-inch retina display and a 5 megapixel camera, which is where NetworkWorld's doubt came in because the iPhone 4S and the iPhone 5 sports 8 megapixel cameras already, while speculations said the iPhone 5S will carry a 12 megapixel camera.

Tactus said the casing will come in five colours of black, white, blue, red and yellow.

The low-cost iPhone is Apple's answer to the growing threat from Samsung and other smartphone manufacturers whose units are eating Apple's share which has been shrinking because of the higher cost of Apple products.

Mashable cited Gene Munster of Piper Jaffray that the device would have a price tag of $300 and provide Apple a lower gross margin of 30 per cent compared to 55 per cent for its pricier gadgets.

AppleInsider estimated such a lower-cost device could eat 11 per cent to 30 per cent of the market within one year of its roll out.

However, other rumours said the production of the low-cost iPhone as well as the iPhone 5S and iPhone 6 are delayed because of serious pre-production issues. It would likely push the release of the low-cost iPhone to the 4th quarter of 2013, while the rollout for the iPhone 6 would be pushed back to 2014.

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