How is Apple dealing with the increasingly rising market threat that is Samsung? The iPhone maker, it appears, is playing the Galaxy manufacturer's game - selling as many handsets as conceivable to all market segments.

As reports persist that Apple plans to widen its market reach by introducing budget iPhones alongside with its regular iPhone serving, the tech giant seems to be heading to that direction, based on the new report by KGI Securities.

The year 2013 will likely witness the introduction of Apple's entry-level iPhone, forming a big part of the tech giant's total projected shipments of 110 million smartphones by the second half of the current year, KGI's Ming-chi Kuo said in a new report.

Surprisingly, the report also indicated that Apple is focusing its key resources in producing low-cost handsets that will consist not only of the rumoured budget iPhones but also of the company's legacy units - the iPhone 4 and the iPhone 4S.

The tech titan, in fact, is tapping a separate Chinese contractor to handle the bulk of the production duties. Mr Kuo identified the firm as Shanghai-based Pegatron, which until today is considered a minor player in the Apple supply chain.

That will soon change, the KGI report said, as Apple allegedly awarded Pegatron the contract to produce millions of handsets that will make their way to select emerging markets, chief of them China.

Chinese buyers can expect then more iPhone choices in the immediate quarters ahead as Apple intends to re-introduce the iPhone 4 and iPhone 4S to the market it is gunning to dominate.

Note that presently, the mass Chinese market is a Samsung turf, which recently dethroned Nokia as the top smartphone seller in the lucrative market with its affordable Galaxy variants as the company's top drawers.

Per the KGI report, Apple is keen on chasing Samsung out of China by matching its strategy with a tried and tested template - the iPhone though tweaked to suit the buying preferences and abilities of its targeted market.

The ploy could play just right for Apple. In Q4 2012, the tech giant snatched back the smartphone crown from Samsung, pushing its bitter rival down into third place.

As expected, the iPhone 5 topped the Strategy Analytic list but what surprised everyone was the feat pulled off by the iPhone 4S. It actually outstripped the total sales registered by the Galaxy S3 during the holiday quarter.

And Apple is taking a page from that success by pushing the 4S further to probably new iPhone users and offering too its predecessor, the iPhone 4.