Japanese site Macotakara claims that a cheaper iPhone will be manufactured with a polycarbonate plastic shell instead of aluminum.
The model would feature a 4.5-inch screen.
The new material will make the device thicker, which would increase its durability.
The sale price will be approximately $330 and the release would be scheduled for 2014.
In addition, the site claims that Apple will release the iPhone 5S or seventh generation smartphone.
This model, an update to the iPhone 5, could be launched this year, with two LED flash to enhance color photos.