If sources are to be believed, Apple is working overtime to develop a new, cheaper iPhone for launch in the later part of 2013.

Indications are that company is looking at producing a less-costly iPhone using a less expensive body, possibly made out of polycarbonate plastic. At this point of time, they use aluminium case for the iPhone 5. The rest of the phone is going to be made up of recycled parts from older iPhone models.

It would be a major shift for the Apple, which has conventionally offered only one new model to the market with each update, but comes after Apple’s smartphone market share dropping alarmingly during the last two years with the popularity of Android.

A less costly iPhone would come close to a year after Apple modified tact on the iPad; releasing an iPad Mini to complement the bigger, more costly iPad that starts at AU$539.