Taiwanese electronics manufacturer and Apple supplier Pegatron plans to bolster its Chinese workforce by up to 40 percent in the second half of 2013, fueling speculation that low-cost iPhone is on the horizon.

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Conventional wisdom says Apple both desperately needs a cheaper iPhone model to compete with low end Android and Nokia offerings, while also holding that lower margins would destroy the company's profitability. Its history offers examples of reaching a middle ground.

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The bulk of Apple's 2013 product pipeline will likely launch later than many market watchers expect, according to one insider, due to a variety of complex development challenges associated this year's anticipated iPhones and new iPad mini.

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A new image that could be the first physical evidence of Apple's low-cost iPhone has surfaced, showing a ribbon cable with a dual-head vibration motor, as well as other components.

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Apple's main rival Samsung pre-announced its earnings on Friday, revealing that the company had an even stronger-than-expected quarter with operating profits of 8.7 trillion won, or $7.7 billion U.S.

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European consumers are cutting back spending in the face of a fragile economy, and the CEO of one telecom says that could signal tough times ahead for Apple's iPhone.

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Apple plans to begin production of its next flagship iPhone this quarter, while the company also has a new, less expensive model in the works for later this year, according to The Wall Street Journal.

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Yet another analyst has thrown their hat into the ring, joining others who have heard from sources in Apple's supply chain that the company is gearing up to debut a low-cost iPhone in the coming months..

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Apple reportedly plans to build a more affordable iPhone model this August alongside launch a new world mode "iPhone 5S" featuring compatibility with China Mobile, the largest carrier in the world.

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A new iPhone design with a polycarbonate body similar to Apple's legacy entry-level MacBook may be released at a targeted price of $330, while plans for a next-gen handset with 4.5-inch display have been pushed back to 2014, according to a new report.

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While rumors persist that Apple is planning to launch a low-cost iPhone, Nokia is set to unveil its own inexpensive handset at next week's Mobile World Congress.

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Morgan Stanley analyst Katy Huberty recently met with Apple Chief Financial Officer Peter Oppenheimer, and came away with the impression that Apple will likely increase cash return to shareholders, and potentially release a lower priced iPhone to maintain growth.

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Samsung's recent successes are an "issue" for Apple that the company must promptly address by expanding the market for the iPhone, one analyst believes.

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Rumors of a more affordable iPhone for emerging markets took an interesting turn Friday, as the major news organization Reuters opted to rescind a story originally filed, based on comments allegedly made by Apple marketing chief Phil Schiller.

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When asked about the possibility of a low-cost iPhone, Apple marketing chief Phil Schiller said his company is not interested in making cheap, low-profit products.

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While Apple currently competes in the high-end smartphone market, a low-cost iPhone would allow the company to address the 65 percent of the market it does not currently serve.

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A rumored contract-free, low-cost iPhone geared toward emerging markets could net Apple $6.5 billion in revenue this year, one analyst believes.

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