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Budget iPhone to sport same 4in display as iPhone 5?

Apple has shrugged off reports of a low-cost iPhone, but that hasn't stopped the rumour mill. The latest report, from KGI Securities analyst Ming-Chi Kuo, suggests the budget iPhone will sport a 4in display — the same size as the iPhone 5.

As reported by AppleInsider, Kuo suggested that specs for the "budget" iPhone were mapped out in 2011, and are unlikely to change based on the market shift toward larger screens.

Kuo did not immediately respond to request for comment.

According to AppleInsider, Kuo suggested that the less expensive smartphone will have a "super-thin plastic casing mixed with glass fibre," making the device stronger, thinner, and lighter than typical phones.

Apple will reportedly take another bold step, offering the new device in a range of four to six different colour choices, much like its updated iPod line, and a far cry from the black or white options iPhone users have had for years.

The rumoured low-cost smartphone could generate around £4.31 billion in revenue for Apple, Piper Jaffray analyst Gene Munster said in January. But Apple chief Tim Cook isn't focused on his company's potential profits; instead, he just wants to make a product he can be proud of.

Last month, when asked if Apple needed a low-cost iPhone to break into emerging markets, Cook said he views the issue a little differently.

When Apple dropped the price of the iPhone 4 and 4S in conjunction with the iPhone 5 release, "it surprised us as to the level of demand we had" for the earlier versions, he said, adding that the company continues to try to make its products more affordable.

"Instead of saying 'How can we cheapen this iPod to get [the price] lower?,' we said 'How can we do a great product?'" Cook said.

There is no official word on whether "a great new product" will include said low-cost iPhone, but if it does, the firm may look to diversity manufacturers, according to AppleInsider, which reported that the company has contracted with its usual partner Foxconn to build casings and assemble the phones, while also enlisting Jabil Green Point and Pegatron.

On top of its budget smartphone, Apple is also rumoured to be working on its next iPhone, the 5S, for a possible August launch.