There were plenty of rumours about Apple's lower-cost iPhone handset. To build quality, but cheaper iPhone, Apple can't use its own A series of processors. Even though they are extremely competitive, they do come at a premium price. Although, it seems that Apple has a solution to that.
According to anonymous analysts at Detwiler Fenton, Apple could use Qualcomm's latest Snapdragon processor. Cost saving is a huge part of bringing a cheaper iPhone to market and to use Qualcomm's latest Snapdragon processor is the right way as it comes with integrated Bluetooth and WiFi. However, we still don't have any confirmation that there is a cheaper iPhone in the work.