There's nothing particularly fresh or surprising about new iPhone rumours, as pretty much anything is possible when it comes to the predicted revamp, but we hadn't expected a considerably cheaper model to be on the cards.
According to the Financial Times, "people familiar with the initiative" are saying Apple will use Monday's WWDC event to announce an iPhone with a cheaper up-front cost that may, just possibly, arrive alongside an upgrade to the standard model.
The FT quotes one Morgan Stanley analyst as saying "It's either a $50 or a $100 cut." Research suggests those price cuts could stimulate iPhone sales by 50 and 100 per cent, respectively.
If a cheaper handset is introduced, however, it makes sense to expect the phone networks to pair it with less expensive monthly plans too.