Investment analyst Gene Munster of Piper Jaffray said he expects Apple to begin offering a $300 non-subsidized iPhone starting in September, CNET reported Tuesday.
While for every three low-cost iPhones sold a sale of one full-price iPhone could be lost, it could give Apple an 11 percent share of the low-end smartphone market, where it currently has no presence, Munster said.
Apple could possibly see sales of 75 million low-cost iPhone models in 2014, he said.
Some analysts said a low-cost iPhone could look different from the flagship iPhone 5.
Topeka Capital Markets analyst Brian White said information from some suppliers and vendors suggests a "low cost" iPhone could come with a curved back casing made of colored plastic that is thicker than the iPhone 5.