Reuters got into the iPhone rumor business today with a big report claiming that Apple will release a $99 iPhone this year or next year. The plastic iPhone rumor is not new, but nobody put a $99 price-tag on it yet. This low price would indeed rock the smartphone market.
The same report also says that Apple looks into releasing iPhones with larger screens in 2014. Specifically Apple is supposed to source 4.7-inch and 5.7-inch displays.
The report says that all this is still in discussion at Apple and nothing is set in stone.