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Apple 'may create cheaper iPhone'

Technology giant Apple may introduce a cheaper iPhone in a bid to reclaim some of the sales it has been losing to less expensive handsets running on Google's Android software, according to a report in the United States.

The Wall Street Journal speculates that Apple could lower the iPhone's price by equipping the device with an exterior which costs less the aluminium housing on current models.

The cheaper iPhone could come out as early as this year, or the idea could be scrapped, as has previously happened.

The Journal cites unnamed people briefed on the matter.

Apple, which is based in Cupertino, California, declined to comment.

Prices for the latest iPhones without a wireless contract currently start at 649 US dollars (400).

However, Apple already sells older models at discounted prices.

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