Digitimes Backtracks on Earlier Claim of Larger, Cheaper iPhone

Earlier this month, Digitimes claimed that Apple was planning to launch a larger and cheaper iPhone in the second half of this year, seeking to make an impact on emerging markets and combat the growing screen sizes seen on Android devices.

Rumors of cheaper and larger iPhones as part of a multi-pronged product strategy for Apple have continued to circulate, but the idea of a new iPhone being both larger and cheaper drew skepticism and questions about how the company would be able to accomplish both goals in a single device.

Digitimes has now published a new report backtracking on its earlier claim and indicating that Apple only plans to launch two new 4-inch iPhone models in 2013, presumably the iPhone 5S and some form of a new iPhone 5, perhaps revamped into a cheaper form factor based around a plastic shell. A larger iPhone is reportedly still in the works, but will not be seeing a launch this year.

Previously it was said that Apple would release a lower-cost version of its iPhone with a bigger screen in 2013. But the sources claimed that Apple is indeed developing an iPhone with a bigger screen, but that will not be among the models to be launched this year.

One of the two versions to be introduced this year will target the midrange market segment, but both will adopt in-cell touch technology.

The report notes that Apple may struggle to bring in-cell display technology to a lower-cost iPhone given issues with yields on the panels, which allow for the thinner profile seen on the iPhone 5, but yields on the new technology are reportedly improving.