In fact, at several points in the report it is stated that Pegatron has entered into an agreement with Apple to produce a cheaper iPhone, and how workers are extensively working on new devices. Given that the report is based on data collected between March and July it is believed that the full production of cheaper iPhone has already started, and therefore it could soon arrive to the market.
In addition to these indirect confirmation of the production of cheaper iPhone, new new alleged pictures of plastic case and a video in which it is compared with the existing models have emerged. Also on some of the pictures we can see that it should bare a name iPhone 5C.
[Ed- This move by Apple is unusual and while there is some evidence to support the posibility that Apple is doing this to try and reclaim market share without spending (losing) mone, it is not like the situation with HTC. This one seems to be more about trying to get more Apple devices on the market without needing to cut prices of their "premium" products. Apple could easily lower the price of their iPhone models and still keep a good margin, but this would not maintain the illusion of quality for their top products. So instead they are going to push out lower end products... I am betting the move will fail.]
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