Is a low-cost iPhone Mini on the way? Rumours suggest a September launch - and a new Apple 'phablet'

Apple may have confirmed much of the speculation surrounding its upcoming products its recent annual developer conference, but that hasn't stopped the rumour mill from turning.

The latest claims are that the California-based company is set to launch a low-cost version of its iPhone 5 handset as early as September.

Dubbed the iPhone Mini, the new handset could be made of plastic to keep costs down and may be sold in a range of colours including white, black, pink and blue.

Accessory manufacturer Tactus published a picture of a cheap, plastic iPhone model earlier this year. The design is rumoured to have a 3.5inch screen and 5MP camera and could cost as little as £63 ($99). Industry analyst Brian White fueled these rumours further when he made reference to a cheap iPhone Mini during a note to investors. The low-cost handset is expected to come in a range of colours and go on sale in September

THE LATEST APPLE RUMOURS

Rumours fueled by an investor note, writeen by industry analyst Brian White from Topeka Capital Markets claims Apple is working on a low-cost handset.

Dubbed 'iPhone Mini' the new handset could come in a range of colours, be made of plastic, have a 3.5inch screen and a 5MP camera.

Prices being quoted range from £63 ($99) to £260 ($400).

Apple is also believed to working on large-screen device for its iPhone 6 model.

The iPhone 6 could have a 4.7inch screen.

There may also be a 5.7inch screen iPhone model due next year.

These current rumours originated in a note to investors written by industry analyst Brian White from Topeka Capital Markets.

According to CNET, White cited research suggesting that the iPhone Mini would come in five colours, be made of plastic and could cost as little as £63 ($99).

Other prices put it much higher at £260 ($400).

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The current iPhone 5 is made of glass and anodised aluminium - the same material that is used to make Apple laptops.

This design makes it feel sturdy but pushes the price of construction up.

The iPhone Mini could follow Samsung's lead and have a glass front with a plastic case.

Apple traditionally unveils new handsets at an annual event in September and White believes this year's event will be dominated by the rumoured iPhone 5S.

White claims that the iPhone Mini could be announced before this event so not to distract from the 5S launch, but Apple will likely show off both handsets together.

The Telegraph also reported that accessory manufacturer Tactus had published a picture of a cheap, plastic iPhone model, rumoured to have a 3.5inch screen and 5MP camera. 

This mock-up shows what Apple's larger iPhone 6 handset could look like. It was designed by French technology site NowhereElse. The iPhone 6 is due to be released in 2014 and is expected to have a 4.7inch screen. Rumours claim that Apple could also be working on a 5.7inch 'phablet-style' handset

Mr White added the iPhone Mini might 'have a curved back casing made of coloured plastic and will be thicker than the iPhone 5.'

Other rumours to have generated from White's note include that the iPhone 6 - expected in 2014 - will have a much larger screen than the current 4inch iPhone 5 model.

Apple could launch a 4.7inch model - which would put it in close competition with Samsung's 4.8inch Galaxy SIII - as well as a 5.7inch 'phablet-style' device. 

These rumours are said to have come from sources within the phone maker's supply chain in Asia.

According to Reuters, these suppliers have been approached with plans for the larger screens, but noted it is still unclear whether Apple will actually launch its flagship product in the larger sizes.

'They constantly change product specifications almost to the final moment, so you're not really sure whether this is the final prototype,' said one person said to have 'direct knowledge of the matter.'

Speaking at last month's AllThingsD industry conference on why Apple hasn't launched different sized iPhones, CEO Tim Cook, pictured, said: 'We haven't so far. That doesn't shut off the future.' Cook noted a larger screen comes with trade-offs on features such as battery life, resolution and brightness

Apple's possible shift to offer what is often referred to as 'phablets' - chunkier smartphones not quite big enough to qualify as tablets - comes as the long-time consumer and investor faces pressure to deliver more than one new handset model a year.

Critics say its pace of innovation has slowed since the death of legendary co-founder Steve Jobs - a reference Phil Schiller, Apple's senior vice president of worldwide marketing, made during the keynote speech at Apple's developer conference in San Francisco this week when he said: 'Can't innovate any more, my ass.'

The iPhone 5, launched last September, was the first model to veer away from the Apple phone's 3.5-inch screen, which Jobs famously deemed 'the perfect size for consumers' and had been used in every iPhone since the iconic device was unveiled in 2007.

The current iPhone 5 has one of the smaller screens among the best-selling smartphones in the mobile market.

Samsung's Galaxy S4 and Galaxy Note 2 have 5-inch and 5.5-inch screens, respectively.

Apple launched its 4inch iPhone 5 handset at an annual event in San Francisco, in September last year. It is made of aluminium and glass, which makes it feel sturdy, but this pushes up production costs. The cheaper iPhone Mini is expected to have the plastic casing as seen on Samsung Galaxy models

For this year, Apple is expected to launch two new models, widely referred to as the iPhone 5S, with new fingerprint technology, and the cheaper version in plastic casing.

Apple plans to dress up the cheaper phone in a range of five or six colours to differentiate it from the more expensive model that has traditionally come only in black and white.

Analysts say the company needs a cheaper gadget to push on in growth markets in China and India, and to counter Samsung's edge in having phones priced up and down the spectrum.

China, the world's biggest smartphone market, is set to grow 48 percent this year, outpacing the global increase of 31 percent, according to industry forecasts.

While Apple only offers a single phone model across all markets, it has successfully marketed the iPod music player and its iPad in different sizes and at varying prices.

If the new iPhone Mini launches as expected, it will more than likely run Apple's latest mobile software - iOS 7. This software was unveiled this week at Apple's developer conference and will be available as a free upgrade in the Autumn

Asked at last month's AllThingsD industry conference why Apple hasn't launched different sized iPhones, CEO Tim Cook said: 'We haven't so far. That doesn't shut off the future.'

He explained that the range of iPods serve different audiences and needs.

'On the phone, that's the question. Are we now at a point to serve enough people that we need to do that?'

Cook noted a larger screen comes with trade-offs on features such as battery life, resolution and brightness.

Test production for both the standard and cheaper iPhone models aims to start next month, with mass production ramping up in August to meet a September launch target, two people said.

'Trial production was originally planned to start in June, but the mixing of colours is taking longer than expected as Apple has very high and idealistic standards,' said one source in Asia, adding 20 million plastic iPhones are expected to ship in the October-December quarter.

Japan's Sharp Corp and Japan Display and South Korea's LG Display will supply the panels for the aluminium iPhone 5S and the plastic iPhone, while Hon Hai Precision Industry is said to be assembling the higher-end phone and Pegatron will put together the cheaper model.

The new iOS 7 software will be available as a free upgrade in the Autumn is the first software to be designed by London-born Sir Jonathan Ive following an alleged power struggle with previous design chief Scott Fortsall. Ive took over in October last year