Rumors have Apple to release a low-cost vesion of its iPhone, following the trend of Samsung and HTC, which both schedule to release "mini" versions of their flagship smartphones. Speculation currently circulating in the iPhone supply chain in Taiwan indicate that Apple plans to launch an inexpensive model targeting emerging markets with initial quarterly shipments of only 2.5-3.0 million units to test market response, Digitimes.com reported today.

The low-cost iPhone is expected to come with a 4-inch LTPS panel powered by an A6 processor as well as a cost-effective plastic chassis.

Apple will subcontract production of the low-cost model to existing ODM partners, including the Foxconn Electronics Group and Pegatron, said the sources.

Apple is scheduled to host its Worldwide Developers Conference (WWDC) 2013 in June and more information about the company's plans could be unveiled there.

Samsung has been also offering a "mini" version of its Galaxy S3 device and plans to release a similar device based on the new Galaxy S4 sometime this summer. HTC is also expected to release the HTC One "mini" in the same period.