A report from the Financial Times which cites "people familiar with the initiative" suggests that Apple could unveil an iPhone model with a considerably lower retail price as early as Monday.
"The anticipated new phone is likely to start production in July with the third version of the iPhone operating system, also expected to be released next week as a free upgrade for existing iPhone owners," writes FT.com.
The article does not go into details on what features a cheaper iPhone would include but cites Morgan Stanley analyst Kathryn Huberty as saying, "it's either a $50 or a $100 cut" based on a survey of consumers that indicated a $50 drop "could increase demand by 50 per cent and a $100 cut by 100 per cent." Huberty has a reputation for off the mark predictions.