A new report says that Apple is working on a cheaper version of its iPhone that could be released this year.

The Wall Street Journal on Tuesday cited anonymous sources to report that the new iPhone model maight use less expensive materials, such as a shell made of polycarbonate plastic.

Apple faces pressure from rival smartphone-makers such as Samsung whose products use the Android operating system.

Apple declined to comment on the report.

Earler rumors suggested that Apple would release its next iPhone dubbed 'iPhone 5S' in June. The new smartphone would feature new touch-sensor technology, a choice of two screen sizes and will be available in a range of colors.

The rumors also suggested that the iPhone 5S would feature a new form of touchscreen technology called 'touch on display,' which offers an improvement over the current iPhone 5's touch-sensing capabilities. In adddition, rumors said Apple would offer the new device in two different screen sizes and five different colors.