Low-Cost Apple iPhone is Coming

All protestations by Apple aside, Apple has to develop a lower-cost iPhone it is to compete with arch-rival Samsung in developing markets, the next big battleground for smart phone suppliers. Apple might continue to deny it is working on such a device.

But analysts at investment firm Detwiler Fenton say Apple is working on a new product for the low end of the market that uses a Qualcomm Snapdragon processor. The device might even deliberately feature less robust graphics and video support, or other features standard on today's iPhones, to maintain distinctiveness from the rest of the iPhone line.