Apple working on cheaper iPhone, report says

The iPhone 5 in white. / Apple

Apple may be preparing to launch a less-expensive iPhone, if a recent report from the Wall Street Journal is true.

Citing "people briefed on the matter," the Journal reports that Apple is working on a "lower-end iPhone" that could launch as soon as this year.

What would a cheaper iPhone look like? According to the Journal's source, the smartphone would resemble the standard iPhone, but with a less-expensive body.

Apple could take a similar approach as it did with the iPad mini and build a smaller phone with specs similar to that of a device a generation behind.

The iPad mini's body is smaller by design and its technical specifications are similar to the iPad 2. The mini device's lower price tag enabled Apple to compete in the smaller tablet market, against products like Amazon's Kindle Fire or Google's Nexus 7.

If the rumors are true, it could widen Apple's reach in the smartphone market and appeal to customers who don't want to sign a contract with a wireless provider. Currently, unlocked iPhones range between $649 and $849.

A spokesperson for Apple declined to comment on speculation or rumors.