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BGR and Digitimes are both reporting on the rumor of the impending release of a new "inexpensive" iPhone to be released at WWDC alongside the rumoured iPhone 5S.

The article, originally posted on Digitimes, reports that Apple will make certain concessions in quality with the new lower cost phone including a plastic case to keep costs down along with a 4" display and an A6 processor. The 4" display is the same size as in the current iPhone 5, and would most likely sport a retina display. The new phone is said to target emerging markets, where top line iPhones can fetch more than $1,000 USD. The goal of Apple would be to attract new customers into their ecosystem in more price sensitive markets.

A few weeks ago Cult of Mac reported on a leaked image of a plastic iPhone case. Combining these reports it appears the release of a lost cost iPhone is imminent. Apple is also reported to be continuing their manufacturing relationship with Foxconn and Pegatron with this potential product release.

Source: Digitimes (via BGR)