Several sources have reported that Apple is working on a cheaper iPhone to launch alongside its new iPhone 5S. Most pundits seem to agree that, if one indeed does exist, it will launch on China Mobile and will be made out of some form of polycarbonate plastic. Despite all of these claims, Apple's Phil Schiller denied that Apple will ever launch a "new" cheap iPhone. The company historically drops the prices of its older models instead.

Despite Schiller's comments, Barclays analyst Kirk Yang recently published a report in which he said Apple will indeed launch a lower-priced iPhone in August or September, at the same time that it launches its new flagship iPhone 5S model. Yang surmises that Apple's budget iPhone will launch on China Mobile with support for its TD-LTE network. The manufacturer Pegatron has allegedly been tapped to build the device.

We covered a similar report yesterday in which another outlet claimed Apple's cheap iPhone will not launch until next year.