There have been numerous rumors over the years that Apple will, eventually, release a cheaper iPhone and in the last few moths those rumors have intensified. Even the Wall Street Journal and Bloomberg have got in on the act, with their reports about the iPhone.
Now DigiTimes, who apparently have a source close to Apple, have reported that the new iPhone will sport a plastic casing, rather than the usual glass and aluminum one, to keep costs down. The supplier for the case will most likely be a US-based electronic manufacturing service, although no names have been mentioned. However, the same report seems to contradict itself slightly with talks of another rumor that it will be a see-through mix of plastic and metal,with all the internal parts on show.
Apparently the new components are being validated now and we could be seeing a new cheaper iPhone later on this year. At the moment, the cheapest iPhone is the 4, which is available for $450 without signing a contract. The new one is rumored to be between $99 and $149 without a contract.