A new rumor claims Apple plans to launch a low-cost iPhone with a larger display in emerging markets in the second half of 2013. From Apple Insider:

The source of the rumor is the much-maligned DigiTimes, which has a questionable track record with respect to Apple products. In a report published on Tuesday, the publication cited supply chain sources who said Apple is working on the new, cheaper iPhone for launch later this year.

"Some sources claimed they had seen the sample of the low-cost iPhone, which will come with a larger display, meeting the prevailing trend for the adoption of 5-inch displays for high-end models," the report said. "They added that the low-priced iPhone will also have a brand new exterior design."

Rumor: Apple planning low-cost iPhone with larger display for late 2013