New rumours claimed that the low cost iPhone will cost $99.

Tech giant Apple is expected to launch the budget smartphone that is widely referred to as the iPhone 5S. Reports claimed that the company has discussed a price of $99 for the cheaper phone, though this has not been finalized and the timing could still slip to next year, according to one of the people. Nevertheless, other sources say that trial production for the standard and cheaper iPhone model aims to start next month to meet a September launch target.

According to investment firm Goldman Sachs, "we continue to believe that Apple will introduce a refreshed iPhone and a low cost model this fall, the timing of which would coincide with the release of iOS which was introduced this week. We would be very encouraged with a larger-screen version of the iPhone, but since that is unlikely until deep into 2014, it is difficult to judge the success of such a product at this point."

The next iPhone is rumoured to feature Retina or IGZO screen display, A7 quad core chip processor, iOS 7, 128GB internal storage, 13 mega-pixel camera, and longer battery life. The lack of NFC support on the iPhone 5 was one of the biggest criticisms aimed at Apple's smartphone.

Meanwhile, the cheaper iPhone 5S is rumoured to sport a plastic casing, 4-inch screen display, dual core processor and 8-megapixel camera. The smartphone is speculated to be available in five to six different colors.

Both Apple smartphones are rumoured to include a fingerprint sensor technology for added security. The rumour is strengthened by the report that Apple bought a fingerprint technology firm Authentec last year.

It is initially reported that the new iPhones will be launched in June along with the upgraded iOS. However, other reports stated that the devices will make its debut in September.

The Apple chief Tim Cook also dropped several hints that the upcoming iPhone 6 and 5S will be released later this year. Cook said that no new products are to launch before the end of the year.

However, the Cupertino-based tech company did not give an official statement on the rumours surrounding iPhone 6 and iPhone 5S.