Apple Inc. (NASDAQ:AAPL) may introduce a lower-priced iPhone later on this year. Digitimes reports that Apple may launch the phone in China  during the second half of 2013.

iPhone mini

Some unnamed sources report that this device will feature a larger display and brand new exterior design. The success of the iPad Mini has proved that there is a demand for lower priced Apple products.

Another source added that QUALCOMM, Inc. (NASDAQ:QCOM) recently launched a new line of Snapdragon processors which were designed for low-to-mid range phones. This may pave the way for low-end Apple phones.

Peter Misek, an analyst at Jefferies, thinks the Digitimes report is accurate. He also thinks the phone may have a starting cost from $200 to $250. Unfortunately, there is not a whole lot more information on this report and naturally Apple has remained silent on the subject.

The rumor regarding a low-priced Apple Inc. (NASDAQ:AAPL) smartphone is nothing new.  Just a week ago, Neil Mawston from Strategy Analytics said he predicted Apple would release a lower-end smartphone within the next three years, but he also said that he didn’t think Apple would release that kind of phone in 2013 because of the immense success of the iPhone 5.

This current report indicates that there is some truth to the numerous rumors that Apple Inc. (NASDAQ:AAPL) may release a line of iPhones.

A lower-end iPhone could be just what Apple needs to boost sales and its presence in the market, especially considering that Android (its top competitor) currently has that market cornered with a range of smartphones for every budget. It should be noted that Apple Inc. (NASDAQ:AAPL) already offers older versions of the iPhone on the prepaid market through Cricket Communications and Virgin Mobile. Although prepaid iPhone users pay substantially less for phone service and data, the phones still cost a small fortune. A lower priced iPhone would benefit the company and customers alike.