Apple's 'budget' iPhone expected to have same 4-inch display as iPhone 5

The details on Apple's so-called "budget" iPhone were revealed on Friday to AppleInsider by Ming-Chi Kuo of KGI Securities, who has a reliable track record in predicting Apple's future product plans. According to Kuo, the specs for Apple's low-cost iPhone were decided in 2011, and the company is "unlikely to abruptly change" due to a market shift toward larger screens in the 5-inch range.

The new, less expensive iPhone model is said to have a "super-thin plastic casing mixed with glass fiber." The material will make it stronger, thinner and lighter than typical smartphone plastic casings, Kuo said.

He expects the thickness to be between 0.4 and 0.6 millimeters, which is thinner than the average plastic casing at between 0.7 and 1 millimeter.

The phone will also reportedly come in a range of colors, much like Apple's iPod lineup. According to Kuo, there will be between four and six options, expanding from the black and white choices currently available on existing iPhone models.

Apple is said to have contracted with Foxconn as well as Green Point of the Jabil group for its strong and thin iPhone plastic casings. Hon Hai will both build casings and assemble the phones, while Jabil is expected to provide its casings to Pegatron, which will assemble the remaining iPhones. The analyst reported earlier this week that Apple was likely to diversify manufacturers for both its low-cost and legacy iPhones.

Kuo's latest report issued on Friday was specifically issued to dispel claims made in a new Economic Daily News story that claimed Foxconn would be losing orders for Apple's low-cost iPhone. That report also erroneously indicated that the device would have a larger display than 4 inches.

The latest information from Kuo corroborates with details that were published by iLounge earlier this year. That report claimed the "budget" iPhone will feature a 5-inch display like the iPhone 5, but will also borrow some design elements from the latest iPod touch and even the legacy iPod classic, with a flat back made of plastic.

In addition to a low-cost iPhone based on the design of the iPhone 5, Kuo also expects Apple to release an updated premium "iPhone 5S" later this year. He has previously revealed that the next high-end iPhone is expected to include a fingerprint sensor under the home button that will eliminate the need to enter passwords and potentially add new functionality such as secure e-wallet transactions through Passbook.