IT IS the world's most sought after gadget, boasting sales of more than 20 million worldwide.
But now Apple is targeting an even bigger slice of the "smart phone" market with a new version of the hugely popular iPhone.
The company is expected to start a summer price war with its rivals by announcing details of a model that is around half
the price of the current one, along with updated software and new versions of the handset.
Apple's position as a market leader in web-browsing mobile phones has come under threat with the recent unveiling of models such as Google's Android.
But the much-anticipated cheaper iPhone is expected to go into production soon and could cost as little as £60.
The price tag is sure to attract gadget-lovers who were not prepared to pay around £100.
Chris Smith, multimedia reporter at online gadget magazine T3, said: "The iPhone is out of the reach of a lot of people due to the expense of its contracts, many people are intimidated by the price and the general device."
However, he said the iPhone should also be made easier to use. "The iPhone is sometimes overlooked as there is so much you can do with it.
" Its complexity can often put people off."
Mark Wilson, reviews editor at Stuff.tv, said Apple's launch of a cheaper model would not damage the iPhone's prestige.
He said: "This is simply natural progression, it follows the usual pattern of Apple constantly reinventing its products in order to stay ahead.
"People love to speculate on Apple products around this time of year."
Apple has declined to comment on the launch, but the company has dramatically dropped the price of the product in the past.
In 2007, after just two months on the market, Apple sliced the price by a third, angering many customers who had queued outside shops the night before the iPhone first went on sale in order to secure the much-coveted item.
Other Apple products have been successfully simplified. The company brought out a simpler, cheaper version of the iPod, named the Nano, followed by an even cheaper model, the Shuffle.
Thousands of customers and developers are gathering for the annual Apple conference in San Francisco, where the launch is expected on Monday.
ANOTHER TRIUMPH FOR APPLE
THE iPhone was introduced in the United States on 29 June 2007, before it went on to be marketed worldwide.
Functioning as a camera phone, a web browser and a portable media player, it was named Invention of the Year in 2007 by Time magazine.
Apple sold 270,000 iPhones in the first 30 hours of its launch.
The phones came to the UK in November 2007, though buyers are currently tied into an 18-month contract with O2.
The third-generation (3G) iPhone was rolled out in June last year, offering users faster access to the internet and e-mail. Apple sold one million 3G iPhones in three days, and to date has sold 21.4 million of the phones.
The full article contains 522 words and appears in The Scotsman newspaper.
